Home prices in 20 cities rise the most since February 2006

The home prices in the twenty cities of the S&P Case/Schiller index climbed 13.7% from November 2012.  This gain was the biggest 12 month gain since 2006 in this property price index.  The Twin Cities area saw gain of 10.5% from the previous year, even after home prices experienced some flattening in October to November.  A relatively limited supply of homes for sale has allowed home prices to continue to appreciate even as higher mortgage interest rates reduce the home buyer pool.

It is hard to say what will happen with mortgage interest rates, but if you can afford to buy there are definitely still opportunities in this market.  I think it would be a good plan to be prepared to be aggressive in this market. I have feeling that given our harsh winter this year we may even step back into a high growth period as we move toward spring.

Full Article- Smialek, J. (2014, January 29). Home prices in 20 cities rise the most since February 2006Bloomberg News.

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