Closing out the books on December home sales resulted in reports that 2012 was the best year in the past 5 years. According to the National Association of Realtors, December previously-owned home sales came in just under November’s but were up 12.8% from the year before. Full year sales were 4.65 million homes, up 9% from 2011, and were the best since 2007 when they were 5 million.
Home Values Rising, but Not Evenly
In the largest increase since 2006, home values rose nearly 6 percent in 2012. This is according to year-end data from Zillow.com. This is greater than the typical appreciation seen in healthy markets, and is largely due to the deep depression home values had fallen into. There wasn’t much of anywhere else for prices to go. Analysts expect the recovery to continue in 2013, but at a more “sustainable” pace.
Interest Rates Not Moving Much
The Federal Reserve is expected to keep mortgage interest rates low in 2013. They’ve been fluctuating a bit lately, but they’re still near historic lows. Interest rates haven’t stayed at very low levels for as long as these have in the past. In January, with 30-year mortgage interest rates at 3.75%, they represented 40-year lows. Refinancing is expected to be a big business in 2013.
2012 Home Sales Best in 5 Years
Closing out the books on December home sales resulted in reports that 2012 was the best year in the past 5 years. According to the National Association of Realtors, December previously-owned home sales came in just under November’s but were up 12.8% from the year before. Full year sales were 4.65 million homes, up 9% from 2011, and were the best since 2007 when they were 5 million.
Home Values Rising, but Not Evenly
In the largest increase since 2006, home values rose nearly 6 percent in 2012. This is according to year-end data from Zillow.com. This is greater than the typical appreciation seen in healthy markets, and is largely due to the deep depression home values had fallen into. There wasn’t much of anywhere else for prices to go. Analysts expect the recovery to continue in 2013, but at a more “sustainable” pace.
Interest Rates Not Moving Much
The Federal Reserve is expected to keep mortgage interest rates low in 2013. They’ve been fluctuating a bit lately, but they’re still near historic lows. Interest rates haven’t stayed at very low levels for as long as these have in the past. In January, with 30-year mortgage interest rates at 3.75%, they represented 40-year lows. Refinancing is expected to be a big business in 2013.