Economists Agree on Increase in Home Prices- Rates Are Trending Up

home price trends

Consensus Looks Good

The consensus forecast of the American Bankers Association economic advisory committee is that the new home sales will be up 25% this year compared to 2012 and home prices will rise 5% to 6% in 2013 and 2014.

The latest Federal Beige Book Report released on June 5, 2013 highlighted moderate pace in economic activity across all the twelve districts. Residential real estate and construction activity increased at a moderate to strong pace in all Districts.

According to CoreLogic Home Price Index report, home prices including distressed sales increased by 12.1% in April on a year-over-year basis. This is the biggest price gain since February 2006.

According to Trulia Price Monitor latest report, asking home prices in May are up 9.5% on year-over-year basis, and rising in 98 of 100 largest metros. Also, the Rent Monitor report shows that rents are up 2.3% year-over-year nationally.

The U.S. economy created 175,000 jobs in May, compared to 149,000 in April 2013. Mortgage companies added 3,000 full time employees in April 2013 marking a net increase of 12% in this sector since April 2012.

Freddie Mac’s 30-year fixed-rate mortgage averaged 3.91% , and the 15-year FRM averaged 3.03%, showing upward trends for the week ending June 6, 2013.

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