Home Prices Grew By 8.1 Percent in January

Home PricesA closely monitored study of sales activity in 20 U.S. cities revealed home prices rose by 8.1 percent in January on a year-over-year basis, which is the biggest such increase in prices since June 2006.

The S&P Case-Shiller index showed home prices rose across all cities monitored by the study in January. Phoenix led the way with a 23 percent increase and several other cities saw prices surge by double-digit percentage points, including Los Angeles. A CNNMoney report on the study noted cities that were particularly hard hit when the previous housing bubble burst are now leading the recovery.

Several factors have helped to spur the growth in home prices. Most notable of these are the current favorable buying conditions, which includes historically-low mortgage rates; a low inventory of available homes; a drop in foreclosures and an improving overall economy.

Analysts remain encouraged by the current direction of the housing market.

“The market still has a long way to go nationally, but the healing process—and a return to a normalized housing market—is definitely underway,” Jim Baird, chief investment officer for Plante Moran Financial Advisors told CNN Money.

To illustrate the point of the market still having a long way to go, CNNMoney noted the S&P Case-Shiller index remains 28.6 percent below its 2006 peak.

In another study released this week, the Commerce Department revealed the sales of new homes slowed slightly in February from the previous month, but was still up a healthy 12 percent from February 2012. Analysts cited bad weather in February as a potential reason for the slowdown. However, they stressed market fundamentals remain strong and home sales are expected to accelerate even faster in the coming months.

 

About Gary Gold

Gary Gold is a marquee name in luxury real estate and his sale of The Playboy Mansion sets a record as the first residence to sell over $100,000,000 in Los Angeles. Gary is also one of its most successful trend setting agents. He’s an internationally recognized expert known for his creative use of technology, marketing and publicity to sell some of the finest homes in the world. Gary is further distinguished by the rare ability to secure high net worth, qualified buyers from digital marketing. This success, year after year, continues to produce a steady stream of buyers from not only the Los Angeles area, but throughout North and South America, Europe, and Asia.

Gary has sold thousands of estates and luxury properties over the course of his career. High-end developers have consistently relied on Gary’s broad expertise on projects ranging from luxury condominium developments to major estates. He is a sought after speaker, panelist and educator at industry conferences. Gary has been cited as an expert for publications and broadcasts that include CNN, Fortune, Barron’s, Wall Street Journal, The Washington Post, Access Hollywood, CBS Evening News, e! Entertainment Television and The London Telegraph.

Gary Gold began his career in real estate over 25 years ago and has been a top producer with Hilton & Hyland since its inception. Hilton & Hyland is Beverly Hills preeminent luxury real estate firm, with over $2.7 billion in annual sales.