In the last year, US home prices went up by 6% and areas like Miami and Orlando, which had 13.6 % and 11.9% increases, respectively, were leading the pack. However, the cumulative increase in home values is slightly smaller than the 8% recorded in 2013 and that kind of gradual slowing is a sign of the times as the market heads for lower expected gains in 2015.
Second & Third Quarter 2014 Saw Increases In Housing Inventory
Within the second half of the year in 2014 inventory increased in many city markets across the US and with more homes on the market, value appreciation slowed down. Stan Humphries, the chief economist of Zillow makes the valuable point, “Looking at the total value of the US housing stock proves just how huge and important the housing sector is to the overall economy. Virtually nowhere else will you see gains of more than a trillion dollars in one year represent only single digit percentages of the total market.”
Lower House Prices Expected In 2015
More and more homes are being put on the market which means home values are expected to lower in next 12 months. Each year we are seeing a trend of more houses being put on the market. For example, October- November 2014 had an 11.8% increase of homes for sale than the year before. Following these trends, 2015 will be even higher and house price growth will slow.
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