Rallying Home Prices Could Extend Gains into 2013

stockbandit91 | Jan 14, 2013 12:35 PM ET KB has raised prices at least 4 times in the last year in So Cal. The cheapest neighborhood of "courtyard" homes has gone from the 200`s, to the high 200`s, to the low 300`s, to the mid 300`s as of this morning....so yes, prices are rising in some markets, and substantially in hard hit areas in CA. Prices up 25%+ in one year, but still it would take another 50% gain from here to hit the 2007 peak, so housing is not yet overpriced, but much closer to a normal level than a year ago.

hughjidette4usa | Jan 14, 2013 12:53 PM ET Sure they will, lol. They went up modestly only because of huge funds and speculators placing bets and we know what happened last time that happened. With the manipulated all time low interest rates by the Fed and that`s all they went up so imagine what`s gonna happen when rates go up and the new consumer protection rules go into effect. Let`s just say Greenspan caused a huge bubble and Bernanke has out done him 10X so let`s see what this artificial market does when reality hits especially with deficits and debt doubling and the American taxpayer ultimately liable. Shoulda never bailed out banks and let the market do its thing and this may have been resolved already by market forces alone, at least then I would have confidence in any price movement.

sidfeinberg | Jan 14, 2013 01:50 PM ET You must buy now or you will be priced out forever. Real estate only goes up and we are experiencing large year over year returns. The White House survey shows a predicted 18% this year alone. As the economy continues to grow exponentially, there are more and more high paying, high skilled jobs being created. This will increase prices for years to come. Buy now

Zephon22 | Jan 14, 2013 02:50 PM ET Prices may go up, but inventory will remain low. I believe most families are in the same boat as ours: traded up to a bigger house and that house is now worth less than we paid for it. Not upside down necessarily, but worth less. Would we like to buy that $1 million dream house now that interest rates are insanely low? Yes, but it`s more difficult to qualify, growth in home values is no longer guaranteed, we will take a hit on the sale of our current residence, and there isn`t much to choose from out here. So why bother? This creates an infinite feedback loop until a) the economy grows, or b) mean wages grow.






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Rallying Home Prices Could Extend Gains into 2013

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