CoreLogic: Home prices climb sharply in January
Posted on Wednesday, March 4, 2015 at 8:04:10 AM
While higher home prices may feel like a bad thing for potential homebuyers, climbing figures can actually be a positive for the housing market as a whole.
Higher prices will encourage sellers to list their homes, and are a sign of stronger economies across the country. According to CoreLogic, home prices ticked up 5.7 percent from January 2014 to January 2015. Overall, there have been 35 months in a row with national home price gains. When comparing December to January, prices increased by 1.1 percent.
S&P Dow Jones Indices added that home prices have been growing at twice the rate of inflation throughout 2014.
David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, explained that home prices and sales are near normal levels. However, he expressed concern over construction and new-home sales, specifically.
Given the current trends with home prices, many Americans are taking the opportunity to buy, sell or take a new approach with their residential financing.
"Many homeowners have taken advantage of low rates to refinance their homes, and until we see sustained increases in income levels and employment they could be hunkered down so supplies may remain tight," said Anand Nallathambi, president and CEO of CoreLogic.
Ideally, homeowners will have more options as the housing market continues to improve.