Home prices were up 5.1% nationally in December on a year-over-year basis, according to data released Thursday by Trulia. Out of the 100 major metro markets covered by the report, 82 of them saw year-over-year gains.
In stark contrast to this time last year, the housing market is chugging into 2013 with a head of steam. “Prices are going into 2013 with strong tailwinds,” said Jed Kolko, chief economist for Trulia.
An increase in household formation, which is also the product of improving job prospects, and home construction could further bolster home prices. To be sure, even among the markets with major gains in home prices, some are better positioned for a sustained housing recovery than others.
An organic recovery in the housing market really took hold in the latter half of 2012, and this improvement is echoed in some of the most optimistic price projections we’ve seen in years.
Record levels of affordability and an improving overall economic picture have really helped buoy the market and have us well positioned for continued growth.
The sharpest tightening of inventory is taking place in Western states. Four of the top 10 cities to see the largest asking price recovery were in California, including Oakland, San Jose, Sacramento and Fresno.
Quote from PropertyCommunity.com : “Existing home sales in the United States rose by 5.9% last month are now at their highest level since November 2009, according to the National Association of Realtors. Total sales, which are completed transactions are now 14.5% higher than a year ago.”