Pioneer Law Firm Sees 2013 Home Appreciation as Positive for Homeowners and Economy
Home prices in 20 U.S. cities rose in October by as much as 13 percent versus the prior year, the most in more than seven years, showing that a real-estate rebound may support household wealth in 2014. Nine of the 20 cities had positive growth with Dallas setting a new record high for the S&P/Case-Schiller Home Price Indices.
In contrast, the Black Knight Financial Services monthly Home Price Index reported a more conservative 8.5 percent increase over the previous year and Zillow reported average quarterly growth of seven percent back in August. Zillow also reports that local markets varied greatly, with a 16 percent gain in Riverside, California and only a 0.4 percent gain in Kansas City. Nationally however, home prices are still down almost 14 percent since 2006.
Looking ahead for the rest of 2014, , homeowners will eventually seek to refinance or sell in order to take advantage of home value appreciation. With more homes available, thorough new construction and recovering distressed or foreclosed properties, demand and supply will eventually equalize to make home prices more consistent. A survey of more than 100 forecasters at the end of 2013 predicted the growth in home prices to slow over the next five years. Although appreciation was brisk in 2013, the growth is predicted to slow to roughly 4.3 percent next year and eventually to 3.4 percent by 2018.
"Houses are traditionally an individual's largest investment and most valuable asset, so home prices are not only important to the general public, but also serve as an important economic indicator. As the nation recovers from the housing bubble, record foreclosures, and the financial industry bailout there is a lot of anticipation that home appreciation will help individuals and communities. It is important that safeguards like mortgage lending regulation, banking oversight, and responsible mortgage products now ensure the mistakes from prior decades are not repeated," says Ben Kittle, Senior Financial Consultant at Strategic Consulting Services. "With so many Baby Boomers relying on their home value for retirement, we cannot afford to do otherwise.
About Pioneer Law
Pioneer Law is a legal firm specializing in Bankruptcy, Business Litigation, FDCPA, and Real Estate law. For those paralyzed by debt, disputing with a business, troubled by a collector, or involved in the sale of real estate, the specialists at Pioneer Law are prepared to advise, represent, and give peace of mind. For more information visit PioneerLawFirm.com.