For 42 consecutive months, the Home Price Index has risen. It was up 6.9 percent from August 2014 and included distressed sales. The boost in home prices in the lower end of the market means owners at that level are finally seeing a rise in equity.
Colorado and Washington are two states enjoying double-digit yearly price increases. Nevada and Oregon are two other states with large increases. New York is an eastern state with heightened prices as well.
According to many experts, home prices are expected to increase by 4.3 percent into the summer of 2016. Next year, economists are forecasting higher mortgage rates and more single-family home construction. The results should slow demand and heighten supply. If you are looking to buy, these projections are good news. The increased amount of homes on the market will allow you to find something you really like. Eventually, there will be a moderation of home price growth so that you will be able to strike a good deal as well.
As major cities like New York, Dallas, Atlanta, Los Angeles, and San Francisco enjoy gains in employment and wage growth, demand remains high and supply is limited. A low selection of homes and expensive rental costs are causing metropolitan communities to experience droughts in affordable housing. If these trends continue, you will most likely see continued home price appreciation into next year and beyond. Only time will tell if this will bring a positive and long-lasting impact on home values and market expectations.
