Regardless of how gloomy February may seem, it does mark the beginning of the spring housing season. It is the weekend after the Super Bowl when home builders start off a busy buying season along with President’s Day sales.
The mercury drops to indicate the freezing temperatures that usually grip the country at this time of the year. However, the scale in home prices rises – and it is exactly this rise that has grabbed the attention of many.
Two recent reports have indicated large increases in price in November, from last year. Based on a three month running average, the S&P/Case-Shiller index marked a 13.7 percent rise from November of 2012.
Strong price gains in previously distraught markets such as that of Phoenix and California have showed up. The sales in these states are slowing, whereas the inventories are on the rise.
In places such as New York, New Jersey, Maryland and Illinois, sales have been slow while prices have been affected by slow foreclosure processing.
Nevertheless, the price gains seem to be pretty large, enough to cause apprehension among the analysts; the reality, however, is that the home prices are still less than those reached in the spring of 2006.
It is obvious that prices lag sales. An approximation of the various price ranges can be gained by analyzing few of the recent sales. For houses priced less than a hundred thousand dollars, the sales have dropped down by 11.5 percent.
On the contrary, expensive houses – those between $750,000 and a million dollars – have seen an 18 percent gain. Houses priced over a million have seen a 6.5 percent increase in sales.
An outlook into what these costly houses have to offer would definitely be interesting and reveal why their popularity is on the rise.
A 6700 square foot mansion in Green Bay with a fully heated garage capable of housing 4 cars at a time, with the master suite having its own custom made spa – attractive indeed! The basement itself is large enough to host parties as well as acting as a personal movie theatre and entertainment center. Priced just below a million – such types of houses have seen a 6.5 percent increase in their demand.
Similar, large mansions are growing in popularity and demand as we head deeper into 2014, and it is unlikely that their demand will cease in any way.