With an increase of 26%, Nevada currently leads the nation in home price growth. US home prices jumped 12.2% in 48 states since May last year, this increase being the highest in last 7 years. This is proof that the US housing market is definitely strengthening and recovering.
This information is according to a report released by real estate data provider CoreLogic last July 2, 2013.
States with highest growth next to Nevada are California at 20.2%, Arizona at 16.9%, Hawaii at 16.1% and Oregon at 15.5%.
In a survey released by University of Michigan last week, they have found that more Americans believe it’s a good time to buy a home because interest rates are still low. Steady hiring and low mortgage rates are encouraging Americans to buy homes today.
Greater demand and limited supply of homes due to fewer foreclosures have pushed prices higher. Prices are 20% below the peak reached in 2006, says CoreLogic.
An increase in home sales is to be expected to continue in the coming months, because the number of people who signed contracts to buy homes rose in June to the highest level since its peak in December 2006.
Mortgage rates have increased within the last 2 months. The average rate on a 30-year fixed mortgage rose by 4.46% last week, according to mortgage buyer Freddie Mac. This is the highest it’s been in the last 2 years, but even with the increase, rates still remain low by historical standards.
According to economists, it is unlikely for higher mortgage rates to stifle the housing market recovery. The important question is whether potential buyers will get approved for loans or not as there are stricter standards now.
There have been signs that banks are now more willing to extend mortgages.
Home prices in Nevada are at its best state right now. If you are thinking of selling or purchasing a home in Nevada, do it now while the inventory is low! Contact Margie McIntyre at 775/250-3181 or email her at Margie@margiemcintyre.com. You can also see her listings at www.margiemcintyre.com.