Case-Shiller: Home Price Growth Continues

Home increased in October according to Case-Shiller’s 20City Home Price Index. Home prices rose from September’s annualized reading of 5.40 percent to 5.60 percent. Factors contributing to rising home prices include stronger economic conditions and outlook along with short inventories of available homes coupled with high demand. On average, October home prices rose 5.10 percent on seasonally adjusted annual basis, which was unchanged from September’s reading.

West Continues to Lead Home Price Growth

Top home price growth rates were in Seattle, Washington at 10.70 percent, Portland, Oregon at 10.30 percent and Denver, Colorado with a seasonally-adjusted annual price increase of 8.30 percent. New York, New York had the lowest home price growth in October with a reading of 1.70 percent.

In a separate report, December consumer confidence exceeded expectations with an index reading of 113.70 as compared to an expected reading of 110.00 and November’s reading of 109.40. This was the highest reading for consumer confidence since 2001. Analysts said that the strong reading for consumer confidence was a sign that consumers will increase their spending in 2017, but what will happen with mortgage rates is a big question.

Rising Mortgage Rates May Slow Home Prices, High Demand for Homes

With the Federal Reserve’s decision to raise its target federal funds range in December comes a question of how rising mortgage rates will affect housing markets. Rising fed rates typically lead to increases in consumer lending rates including rates for home loans and refinancing. Combined effects of rising home prices and mortgage rates create challenges for first-time and moderate income home buyers. While higher mortgage rates have not impacted buyer demand so far, rising mortgage rates could sideline some buyers.

A recent compilation of the most expensive places to live in America illustrates the imbalance of home prices as compared to consumer incomes. Brooklyn, NY topped this list with a reading of 127.70 percent of average household income earned in Brooklyn to buy an average priced home in Brooklyn. Analysts reporting this data noted that many Brooklyn homeowners work in Manhattan and earn more than those who work in Brooklyn. Disparities in average home prices and home buyer incomes could “trickle down” to less expensive areas if mortgage rates and home prices continue to rise.

Meanwhile, builder confidence is strong and is expected to lead to higher levels of home construction in 2017.

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5610 W Willow Ridge Drive Laveen, AZ 85339

$447,990 - 4Br/3Ba -  for Sale in Estrella Crossing, Laveen
New
$447,990
4 Beds
3 Baths
1,912 SqFt
Status Active
MLS # 6683276
Property Type Single Family Residence
Price Type --
Beautiful Brand New Home in a Highly Desirable Central Location - Featuring countless upgrades such as 9' ceilings, Shaw - Milan - Surf 17x17 Tile, Granite countertops in the kitchen. Whirlpool Stainless steel appliances. White cabinets. Energy-efficient features throughout, Programmable thermostat, gas heater, gas range. Spacious walk-in closet in owners suite. Front yard landscaping, covered patio in the backyard. Spectacular Mountain Views! Minutes from downtown Phoenix in a master-planned community featuring walking trails, greenbelts, neighborhood parks and playgrounds. Conviniently located off the Loop 202 and near schools, shopping and dining!

11496 W Arron Drive Youngtown, AZ 85363

$447,900
3 Beds
2 Baths
1,795 SqFt
Status Active
MLS # 6655387
Property Type Single Family Residence
Price Type --
3 bedrooms, 2 bath, and all of the space you could imagine makes this floor plan the perfect home for you! This new home comes filled with upgrades including a full suite, stainless steel energy-efficient kitchen appliances, beautiful granite countertops, stunning wood cabinets, designer light fixtures, and an attached two-car garage. The Prescott floor plan also showcases a private master suite complete with a walk-in closet, as well as a spacious kitchen with walk-in pantry, fully fenced backyard, covered patio and front yard landscaping. As an added bonus, this home has a separate den off the entryway, giving you space for a formal dining room or home office. Whatever your heart desires, the Prescott is sure to have it! Enjoy the view of the White Tank Mountains from your NEW home!

15311 W Dreyfus Street Surprise, AZ 85379

$447,900 - 4Br/3Ba -  for Sale in Marley Park, Surprise
Open House
$447,900
4 Beds
2.5 Baths
2,182 SqFt
Status Active
MLS # 6628799
Property Type Single Family Residence
Price Type --
Welcome to one of the most idyllic communities in Surprise, original Marley Park. The community pool is around the corner, and one of 18 unique parks is right out your door. Don't forget the manicured rolling grassy areas that you are welcome to enjoy... without the maintenance. The calendar is full of events all year round, with a ton of activities for the kids. Walk to one of the top-rated schools in the area (.6 mi), while enjoying the craftsman architecture and mature trees. This 4 bed/ 2.5 bath home is one of the original models. ALL appliances included! Downstairs you'll find formal dining space, an open kitchen, granite counters, and plantation shutters. Primary bedroom is on the main level, with three bedrooms upstairs. Less than 5 min to the 303 and Prasada shopping

17642 W Colter Street Litchfield Park, AZ 85340

$447,805
4 Beds
2.5 Baths
1,960 SqFt
Status Active
MLS # 6666776
Property Type Single Family Residence
Price Type --
Up to 2% of total purchase price towards closing costs incentive offer. Additional eligibility and limited time restrictions apply. MLS#6666776 July Completion. Discover the Harlow at Allen Ranches: a spacious 1-story layout spanning 1,960 sq. ft. with 4 beds, 2.5 baths, a 2-car garage, and a study. It's the largest among the single-story options, ensuring satisfaction. Step into the foyer leading to a dreamy home office. Explore further to find an open kitchen, casual dining, and great room space. Embrace Arizona's beauty from your own outdoor haven. The owner's suite boasts a private bath with double sinks and a walk-in closet, offering an ideal retreat. Design options include: upgraded gas range, wood look 6 x36 wood look plank, shaker style cabinets, and custom tile backsplash

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