Home prices jump nationwide; buyers face paying more now or higher interest rates later

New York /
Apr.April 08, 2013 11:00 AM

The U.S. housing market has taken a sharp upward turn, trapping homebuyers in a Catch-22: pay significantly more for a property than just a year ago or wait and risk paying a higher interest rate.

Asking prices for existing homes shot up by 10 percent year-over-year nationwide in February because of low inventory and higher demand as a result of rising rents and falling interest rates, the Wall Street Journal reported.

The country added about 1.3 million households annually during a 10-year period ending in 2007, according to data provided to the Journal by Altos Research, an analytics firm in Mountain View, Calif.

The pricing rise will likely mean few affordable properties for many house hunters, but experts insist the uptick doesn’t signal another property bubble: “The recovery is solid. There are pure fundamentals you can point to,” John Burns, CEO of a real estate consulting firm based in Irvine, Calif., said. [WSJ] – Katherine Clarke


Related Articles

arrow_forward_ios
cliffside, building, money
$16B in CMBS loans nearing cliff in NYC
$16B in CMBS loans nearing cliff in NYC
(Photo Illustration by Steven Dilakian for The Real Deal with Getty Images)
What happened to NYC’s condo glut? Here’s a look inside the numbers
What happened to NYC’s condo glut? Here’s a look inside the numbers
From left: Avalon Bay Communities' Timothy Naughton and Equity Residential's Mark Parrell (Getty, NMHC, Avalon Bay Communities)
REITs post worst year since 2008. Have they hit bottom?
REITs post worst year since 2008. Have they hit bottom?
How commercial real estate players use interest rate swaps and caps
How commercial real estate players use interest rate swaps and caps
How commercial real estate players use interest rate swaps and caps
TRD's Harrison Connery, Orion Jones and Hiten Samtani
Watch: Understanding Compass’ latest financials
Watch: Understanding Compass’ latest financials
(Getty/Illustration by The Real Deal)
TRD Pro: 7% mortgage rates are not so bad
TRD Pro: 7% mortgage rates are not so bad
(Getty; Illustration by The Real Deal)
Agents: Life is good under 7%
Agents: Life is good under 7%
Home sales plummet in October
Existing home sales sink for ninth straight month
Existing home sales sink for ninth straight month
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...