Home prices reverse trend after months of decline
Posted on Friday, January 17, 2014 at 9:20:40 AM
Over the past several months, home prices and inventory have been headed downward, leading to frustration for homeowners and those interested in residential financing.
However, prices recently bucked that trend, albeit slightly, according to Redfin's Real-Time Home Price Tracker. In December, prices increased 0.8 percent month-over-month and 13.1 percent year-over-year. This is in part due to a decline in new listings and other types of homes, coupled with rising sales.
Redfin compiles data from 19 major housing markets across the U.S., and all experienced year-over-year gains in home prices, while 13 reported month-over-month increases. The largest uptick on a monthly basis was felt by Washington, D.C., at 15.5 percent, followed by Phoenix at 13.9 percent. In addition, every city saw a drop in homes for sale from November to December.
According to the Mortgage Bankers Association, fewer people were interested in mortgage applications for new home purchases in December. The figure dropped 11 percent compared to November, although it wasn't adjusted to reflect any seasonal changes. Conventional residential financing loans made up 63 percent of total loan application volume, and the average size increased from November's $295,523 to December's $300,444.