Housing market in recovery? Yes, but signs show there will be a slow down in 2013
Writing for Housing Wire, Megan Hopkins reports that the housing prices are likely to top out at modest increase in value:
Despite beginning the year with market lows, most home prices gained momentum toward the end up 2012, finishing the year at 4.9% year-over-year price gains. Some markets, though they are few, may also suffer a backslide in values.
According to the latest Clear Capital home data report, national home prices are expected to increase by only 2.1% this year. The 2013 yearly gains are expected to be smaller partly because homes are starting on a higher price base, but the entire explanation is more complex than that, Clear Capital notes.
While many western localities are seeing the firming up of housing prices, there are still several areas that could potentially see a shift down in pricing:
Only eight markets are projected to see prices fall in 2013, including Denver; Louisville, Ky.; Charlotte, N.C.; Philadelphia; Atlanta; Baltimore; Chicago and St. Louis. For those eight markets, average declines should come in at just 0.9%.
Thankfully, the Seattle area housing market continues to lead the charge in the beleaguered housing recovery:
Seattle, a market with a strong recovery already in the works, is expected to see the highest gains of the top 50 major metro markets at 13.5%.