But as mortgage rates ratchet up, homes will be less affordable, tamping down sales and home-price growth in many cities.
HOME PRICES ROSE AT A NICE CLIP in 2016 as buyers, encouraged by job growth and exceptionally low mortgage rates, competed for slim pickings. Prices increased 5.8% nationally, compared with 4% in 2015, according to Clear Capital, a provider of real estate data and analysis. But with home prices out of reach for many first-time buyers, a limited supply of homes for sale and mortgage credit still tight, Kiplinger forecasts that price increases in 2017 will revert to a 4% pace—the historical U.S. average.
Home values rose in 253 of 276 cities tracked by Clear Capital, going up by double digits in about one-fifth of them. (For data on the 100 largest metro areas tracked by Clear Capital, see the table on page 44.) The cities with the biggest gains were buoyed by vibrant local economies, where rising population and job growth fueled demand. They include Deltona, Fla. (with a gain of 14.7%), Austin, Texas (14.5%), Salt Lake City (12.3%), Seattle (11.4%) and Portland, Ore. (11.4%).
But many homeowners have been left behind in the latest price run-up. Average prices remain nearly 12% below the peak they hit just before the housing bust a decade ago. And home values fell in a couple of dozen metro areas—mainly in parts of the Northeast, Mid Atlantic, and industrial Midwest and South. The price drops occurred mostly in smaller cities with lackluster economies, such as Watertown,N.Y. (–7.2%), South Bend, Ind. (–7.6%), Atlantic City, N.J. (–9.9%), and Baton Rouge, La. (–3.3%), where the economy took a hit because of declining oil prices.
During the last boom, “everyone did well,” says Alex Villacorta, vice president of research and analytics at Clear Capital. “In the downturn, everyone did badly. As the recovery began, everyone got a bump-up. Now, there are winners and losers.”
HOUSING MARKET HEADWINDS
Bu hikaye Kiplinger's Personal Finance dergisinin April 2017 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Kiplinger's Personal Finance dergisinin April 2017 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS
He suffered grave injuries in the line of duty. Now he helps other veterans who have disabilities.
DO YOU NEED UMBRELLA INSURANCE?
A policy can protect you from financially devastating events.
Navigating Finances as a Blended Family
Money matters can get complicated when two families unite. Planning is key.
BREAKING UP WITH YOUR BROKER
Be aware of these challenges when you move your money to a new home.
CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU
Consider your health care needs over the long term as you weigh costs and coverage.
Keep Faith in These Stocks
IN 1997, I coined the phrase “faith-based investing.” It has nothing to do with religion or with picking stocks at random.
OUR ESG PICKS ARE THRIVING
Despite an ongoing backlash, our favorite stocks and funds focused on environmental, social and corporate governance issues had a good year overall.
MONEY MANNERS FOR THE MODERN AGE
The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
ELECTION 2024: POLITICS AND YOUR PORTFOLIO
Who wins the White House matters—but only at the margins when it comes to your investments.
YOUR GUIDE TO OPEN ENROLLMENT
With health care costs on the rise, it’s critical to select a plan that fits your needs at the right price.