Year-over-year, the index’s 10-city Composite saw a 5.1% annual increase, up from 4.8% from the month prior, and the 20-City Composite recorded an annual increase of 5.7%, up from 5.5% from the previous month.
Seattle ranked first in January with a year-over-year home price increase of 11.3%, followed by Portland with 9.7% and Denver with 9.2%.
"Housing and home prices continue on a generally positive upward trend," said David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. "The recent action by the Federal Reserve raising the target for the Fed funds rate by a quarter percentage point is expected to add less than a quarter percentage point to mortgage rates in the near future. Given the market's current strength and the economy, the small increase in interest rates isn't expected to dampen home buying. If we see three or four additional increases this year, rising mortgage rates could become concern.
Month-over-month and prior to seasonal adjustment, the national index gained 0.2% in January, while the 10-City Composite increased by 0.3% and the 20-City Composite went up by 0.2% in the same month. After seasonal adjustment, the national index rose by 0.6%, while the two city composites increased by 0.9%.
"While prices vary month-to-month and across the country, the national price trend has been positive since the first quarter of 2012,” Blitzer added. “Tight supplies and rising prices may be deterring some people from trading up to a larger house, further aggravating supplies because fewer people are selling their homes. The prices also hurt affordability as higher prices and mortgage rates shrink the number of households that can afford to buy at current price levels. At some point, this process will force prices to level off and decline – however we don't appear to be there yet."
Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052
With over 30 years of experience helping families call Las Vegas "home!"
Related Blog Posts
Wei Chen-Goldman, one of the very experienced agents on the #1 Tonnesen Team at Berkshire Hathaway HomeServices Nevada Properties has just listed another beautiful home in the gated, age-restricted community of Sun City Anthem. This popular one story “Lincoln” home is 2,096 square foot and has a 2-car ga...
Buying a house can be both an exciting and simultaneously stressful experience. One reason the home buying process tends to be so stressful for many consumers — besides the fact that it’s probably the biggest purchase you’ll ever make — is the rigorous qualification process involved in gett...
Well, it's the first day of 2013, and the beginning of a new year of "statistics" for the national real estate market. I thought I would start this year out by posting an article from one of my Realtor buddies in Myrtle Beach, South Carolina at the Harrelson Group. We like to confer about changing market cond...
The Omaha tycoon referenced more acquisitions for the brokerage firm over the next 10 years In Warren Buffett’s 2016 investor letter released this past weekend, the folksy tycoon called out HomeServices of America (HSA) and said to expect more acquisitions. The company had $225 million in earnings las...