Strong sales figures, and continued low mortgage rates have housing prices up a healthy 12.4 percent in July. The forecast calls for continued improvement in August (once figures are tabulated) and it now appears that overall prices are within 18 percent of their 2006 high. All these figures have been adjusted to account for distressed sales but that number has also been falling, again indicating an increasingly healthy market.
Experts think the increases will moderate in the latter part of 2013, but indicators remain positive. The five best markets so far are Nevada (+24.2%), California (+20.2%), Arizona )+14.9%), Utah (+13.5%) and Florida (+13.5%). If mortgage rates remain low and other economic indicators, especially job growth continue to improve, then it’s highly likely that home prices will also improve in 2014. But the recovery in the U.S, remains slow and a bit lackluster and other economies around the globe remain spotty. The Eurozone is still weak and while other advanced economies are improving, many emerging ones are starting to slow.
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