U.S. Home Prices Rise in October by Most in 6 Years - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

U.S. Home Prices Rise in October by Most in 6 Years

Posted:
(Photo: MGN) (Photo: MGN)

WASHINGTON (AP)- A measure of U.S. home prices rose 6.3 percent in October compared with a year ago, the largest yearly gain since July 2006. The jump adds to signs of a comeback in the once-battered housing market.
 
Core Logic also said Tuesday that prices declined 0.2 percent in October from September, the second drop after six straight monthly increases. The monthly figures are not seasonally adjusted. The real estate data provider says the decline reflects the end of the summer home-buying season.
 
Steady price increases are helping fuel a housing recovery. They encourage more homeowners to sell their homes. And they entice would-be buyers to purchase homes before prices rise further.
 
Home values are rising in more states and cities, according to the report. Prices increased in 45 states in October, up from 43 the previous month. The biggest increases were in Arizona, where prices rose 21.3 percent, and in Hawaii, where they were up 13.2 percent.
 
The five states where prices declined were: Illinois, Delaware, Rhode Island, New Jersey, and Alabama.
 
In 100 large metro areas, only 17 reported price declines. That's an improvement September, when 21 reported declines.
 
Mortgage rates are near record lows, while rents in many cities are rising. That makes home buying more affordable, pushing up demand.
 
And more people are looking to buy or rent a home after living with relatives or friends during and immediately after the Great Recession.
 
At the same time, the number of available homes is at the lowest level in 10 years, according to the National Association of Realtors. The combination of low inventory and rising demand pushes up prices.
 
Last week, an index measuring the number of Americans who signed contracts to buy homes in October jumped to the highest level in almost six years. That suggests sales of previously occupied homes will rise in the coming months.
 
Builders, meanwhile, are more optimistic that the recovery will endure. A measure of their confidence rose to the highest level in six and a half years last month. And builders broke ground on new homes and apartments at the fastest pace in more than four years in October.

  • Delmarvawide NewsDelmarvawide NewsMore>>

  • Delmarva Power: Conserve Energy on Tuesday

    Delmarva Power: Conserve Energy on Tuesday

    Monday, September 1 2014 9:22 PM EDT2014-09-02 01:22:31 GMT
    Delmarva Power is asking customers to conserve energy on Tuesday due to high forecasted temperatures.More
    Delmarva Power is asking customers to conserve energy on Tuesday due to high forecasted temperatures.More
  • New Law in Delaware Revises Minor Environmental Offenses

    Tuesday, September 2 2014 7:43 AM EDT2014-09-02 11:43:22 GMT
    People who violate certain environmental laws regarding hunting, fishing and other outdoor activities in Delaware will soon no longer be slapped with criminal records.More
    People who violate certain environmental laws regarding hunting, fishing and other outdoor activities in Delaware will soon no longer be slapped with criminal records.More
  • Virginia Farm Real Estate Value Increases

    Tuesday, September 2 2014 7:39 AM EDT2014-09-02 11:39:13 GMT
    The value of farm real estate in Virginia has increased over the past year.More
    The value of farm real estate in Virginia has increased over the past year.More
Powered by WorldNow

All content © Copyright 2000 - 2014 Worldnow and WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service