May 10

Home Prices to Rise 4% Per Year?

Home Prices to Rise 4% Per Year?

Home Prices to Rise 4% Per Year?

Home Prices to Rise 4% Per Year?

Average U.S. home prices — down by a third since 2006 and still falling — will rise almost 4% a year for the next five years, according to a new forecast.

Market watcher Fiserv sees prices stabilizing by summer’s end and then climbing, quickly in some places until gains taper off. The forecast is based on an analysis of leading home price indexes.

Investors will drive much of the momentum for home prices, as they are now in cities such as Las Vegas and Phoenix.

  • STORY: Mortgage delinquencies decline

First-time and trade-up buyers will eventually follow.

By the time home prices stop falling, they’ll be almost 35% below their 2006 peak, Fiserv says.

Separately, market researcher CoreLogic said Tuesday that U.S. home prices rose 0.6% in March from February, the first month-over-month increase since July.

Good affordability and declining inventories are key factors.

Conventional mortgage payments now account for just 12% of median family incomes vs. a historical norm of 20%, says Fiserv economist David Stiff.

The Fiserv forecast, done with Moody’s Analytics, assumes steady economic growth with no major shocks. Markets hardest hit by foreclosures will show the biggest five-year increases in home appreciation, it adds.

Six of the 10 markets where annualized prices are expected to rise most over the next five years had price drops of more than 50% from their peaks.

Las Vegas, for instance, is 61% off its 2006 peak.

Meanwhile, Realtor.com says Florida has more cities than any other state that show the strongest signs of a housing recovery.

Each quarter, the real estate website assesses housing data, including changes in list prices, inventories of homes for sale and local economies.

Phoenix, Miami and Orlando are the top turnaround cities in its study, based on those markets’ improvements in the first quarter compared with a year earlier.

Home prices are up more than 20% in Phoenix and Miami, says Realtor.com. Inventories are down more than 40%.

Naples, Fla., and Boise are also climbing in the rankings.

New to the list of top 25 markets are Oakland and San Jose, which are benefiting from growth in the tech industry.

The continued performance of local markets will depend a lot on the economy as well as on how quickly lenders dispose of distressed homes, says Realtor.com CEO Steve Berkowitz.

admin

For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.

Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.

Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.

When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.

For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.