Home prices set for 5.5 per cent increase by 2017
Home prices increased by 6.9 per cent nationally in the year to January 2016 according to data from CoreLogic. The figure, which includes distressed sales, showed a 1.3 per cent rise from the previous month.
“Heading into the spring buying season, home prices continue to rise across much of the country,” said Anand Nallathambi, president and CEO of CoreLogic. “With rates staying low for now and continued solid job and income growth, the spring buying season is shaping up to be a good one.”
The analytics firm expects home prices to rise by 5.5 per cent in the 12 months to January 2017.
Homeownership is most important to these Americans
Owning your own home is an important part of the American Dream but its importance varies according to a person’s background. In its latest Housing Confidence Index, Zillow found that Millennials and non-white Americans are more likely to make the connection between owning a home and the American Dream than other groups.
Almost two thirds of millennials say that home ownership and the American Dream go hand in hand. Hispanic, Asian and black respondents all agreed in more than 60 per cent of cases. Among white Americans the figure was slightly below 60 per cent.
Housing demand remains high in the Lone Star State
Realtors in Texas say that demand for homes and new home development remain high in the state but highlight the stalling growth in income. In the period from July 2015 to June 2015 median household income in the Lone Star State fell by 0.4 per cent to $97,100.
The chairman of the Texas Association of Realtors, Leslie Rouda Smith commented: “Texas home prices have risen steadily for the last several years, but household incomes for many Texas homebuyers are not growing fast enough to compensate. Texas Realtors are working with their clients to identify affordable paths to responsible homeownership … and working collectively at the Legislature to keep homeownership affordable in our state.”
New home development remained strong during that period with new homes making up 30 per cent of home purchases, a rise of 2 per cent.