Home prices in the U.S climb in a faster rate in November, revealing 5.8% increase. It is also noted that there are four metros that have fully rebounded from recession and have already reached an all-time high at this time.
NBC News reports that record showed that in November the increased of home prices were moving along at a good clip. It was noted that "the gains fueled by solid hiring growth, historically low mortgage rates and a shortage of houses on the market."
Report says that the "The Standard & Poor's/Case-Shiller 20-city home price index rose 5.8 percent from a year ago, up from a 5.5 percent pace in October."
According to NBC News, Home values all over the country have practically ameliorated "from their July 2006 peak," At the same time that the real estate market has also gradually gotten back "from the housing bust that triggered the Great Recession." However, there are a number of metropolitan areas that have completely recovered from the downturn. Based on report, "Four metro areas - Dallas, Denver, San Francisco and Portland Oregon - have either matched or eclipsed their all-time highs."
It is also mentioned in the report that the climbing of home values coupled with limited supply could eventually put off sales growth this year. Bloomberg says that the low inventories definitely boost the real estate values. In addition, it also helps "support household wealth for homeowners and offsets some of the damage from the drop in stock prices."
Report also states that the mortgage rates are expected to stay low. On the other hand, "faster wage growth is needed to bring homes within reach of more Americans, underpinning the industry's recovery this year."
David Sloan, a senior economist at 4Cast Inc. in New York, has projected the gain. According to Sloan, the trend in home prices actually has a positive underlying picture. He said that price appreciation will continue on the condition that demand remains strong. This trend is also expected to continue this year.
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