Monday, April 1, 2013

Real Estate wealth improved $1.4 Trillion in 2012

 A lack of inventory has slowed home sales in some markets yet rising prices are encouraging more people to place their homes on the market. Existing homes for sale rose 10% in February, according to the National Association of REALTORS®.
Rising home prices are also driving down the threshold of underwater homeownership. CoreLogic reported in late March that another 200,000 residential properties returned to a state of positive equity during Q4. For all of 2012, 1.7 million homes moved from negative to positive equity, CoreLogic said.

Accordingly, household real estate wealth increased by $1.4 trillion in 2012, according to the Federal Reserve, which suggests that more homeowners will return to the real estate market to buy and sell.

Higher home prices also have activated homebuilders, who in February broke ground on a seasonally adjusted annual rate of 910,000 homes, the second-fastest pace since June 2008, according to the Commerce Department.                    Source:  Prudential Tropical Realty Monthly Newsletter, April 1, 2013

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