Rising Home Prices Set the Trend for 2018
The national price of homes continued to climb in the month of November, rising over the past year an average of 7 percent across the nation. Home prices are expected to continue to climb another 4.2 percent through November 2019.
While there has been a steady increase in home prices since 2012, the largest rate increase in the 20-city index registered a 6.4 percent growth rate year-over-year. This is the single highest increase since June of 2014. The monthly data was released Tuesday by the S&P CoreLogic Case-Shiller index.
However, November upsurge was spread throughout the nation unevenly. The biggest growth was observed in the West. Seattle had a 12.7 percent annual increase when comparing November of 2017 and 2016; they led the nation in home sales growth. Right behind Seattle was Las Vegas and San Francisco. Los Angeles also over performed the national average, with a 7 percent annual increase.
The East also saw a jump in sale prices, although less than those in the West. In New York, for example, some metro areas saw home prices rise 5.7 percent.
Miami is also showing a significant increase. The price of homes is rising 4 percent on average. A great trend coming into 2018, and sets precedence for the rest of the year into 2019. Prices in Chicago, Cleveland, Detroit, Charlotte saw annual decreases, creating an attractive buyer’s market.
Somewhat of a concern, the rising house market outpaced the rise in wages. In addition, the tax bill, which passed in December, may bring balance to the first-time purchaser’s creating availability of funds, closing the gap between the rising home cost and the burden that a higher cost home can create.
Yet to be seen are any outside factors from the tax bill which may affect the price of homes.