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Home Price Gains May Slow in 2013

Home Price Gains May Slow in 2013

LoganMohtashami | Jan 4, 2013 02:50 PM ET "I personally think that a lot of the price appreciation we`re seeing in many markets right now is because the market of tradable homes is thinner than usual because of high negative equity," said Zillow`s chief economist Stan Humphries. "This condition will change as home price gains pull homeowners out of negative equity and the market becomes more fluid." The inventory collapse of 2012 was the main reason why home prices went higher. There is a myth that millions of homeowners that were underwater this year are now positive and will be looking to sell. This will not occur in big numbers because homeowners who were in the 100 -110 LTV range whose homes appreciated 5-10% still wouldn`t have enough equity to sell their home, pay their real estate agent and have anything left over for anot

motorcitybro | Jan 4, 2013 03:25 PM ET Logan are you referencing people like me? Who are underwater and have been since the crash of 07-08: and I don`t see any positive equity in sight for me in the near distant future. In addition since I bought my house I`ve had to forego one break-in thus far, and forced to put bars on my windows in hopes of foregoing another assault on my domain. The likelihood of me gaining any substantial appreciation is truly null and void.

LoganMohtashami | Jan 4, 2013 03:59 PM ET @motorcitybro Actually, I don`t know where your LTV levels are now. However, I don`t think it`s your situation that I am talking about. However, the theory that was pushed on CNBC by the CEO of Reaology was that people who become slightly positive on their home in 2012 or 2013 would sell now. This isn`t going to be case because after your sell your home and pay your real estate agent you`re still negative and have to bring cash to escrow. Talking about those who were in 100-107 LTV range that maybe became slightly positive. You can make a case that those who were 85-95 LTV ( Some Equity) would be in a better place to sell because after paying off the Real Estate Agent . They would have some capital left over The Myth that underwater homeowners who became positive jus

Eddie_06492 | Jan 4, 2013 04:02 PM ET I wouldn`t be surprised to see national home price appreciation greater than 5% in 2013.

Breakthetrance | Jan 4, 2013 04:02 PM ET The housing recovery is being driven primarily by unsustainably low interest rates. Once the 30 year fixed returns back to close to 5%, watch the market squirm.

LoganMohtashami | Jan 4, 2013 04:16 PM ET Mortgage Rates have fallen from 5% in early part of 2011 to as low as 3.25% in 2012 Mortgage purchase application have been the walking dead since mid 2010. That speaks volumes to what will happen when rates rise substantial higher Not only do you need massive job expansion you need real strong income growth to off set the future rise in inflation and rates. Hmmmm Globalization, Technology, Debt and Demographics is making that harder and harder per the trend of the past 3 decades. LoganMohtashami

vaughngerald | Jan 4, 2013 04:30 PM ET

realdealagent | Jan 4, 2013 05:14 PM ET Diana, Really? I live in LI, NY in a great neighbor hood and there`s plenty of houses with for sale signs on them that have been there for over a year. Where in this country are you talking about that housing prices are on the rise, and who`s buying them? Even with low mortgage rates, the banks are not lending unless you`re a professional or someone has a great job with low risk...which are not many. Home prices have leveled off at the very bottom with no price rise.. I have no idea where you`re getting you info from... You can not use the excuse for lack of inverntory... Lot`s of homeowners just wanna get the hell outta here and move to a more rural lifestyle. Yesterday CNBC said the home building sector was soaring all year...maybe on paper! Again, who could afford to buy a new h

sidfeinberg | Jan 4, 2013 05:14 PM ET Said it before and will say it again, the 2nd bubble has already started. We are only missing sub prime to return, WHICH IT WILL, and we are doing the same exact thing

jimmy24 | Jan 4, 2013 05:32 PM ET LoganMohtashami, "This isn`t going to be case because after your sell your home and pay your real estate agent you`re still negative and have to bring cash to escrow." What about the 5% obamacare fee for home sales going forward, any thoughts on how this will affect sell decision?

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Home Price Gains May Slow in 2013

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