Park City Real Estate Blog

Home prices up 7.4% nationally

By Sean Brown
Jan 15, 2013

From one of my favorite blogs, Calculated Risk, comes more good news on the housing market via CoreLogic: CoreLogic: House Prices up 7.4% Year-over-year in November, Largest increase since 2006

It is interesting that the October 2012 to November 2012 price increase was 0.3%. Compounding that percentage monthly for a year yields 3.66%. The difference between 3.66% and 7.4% obviously has causes. As the article indicates demand goes down during the winter months. But I bet there is at least another factor at play: new construction is filling some of the inventory void, helping to slow the increase of prices.

What I am seeing in the better (e.g.: little if any room to build new) locations of the Park City market is once a couple good sales happen, other listed properties come off the market. Their sellers feel that there isn't a better place right now to keep their equity and, two or three years hence, they are betting their property will be worth considerably more. Right or wrong, that further reduces supply and puts more upward pressure on prices.

Prices are increasing nationally and in the Park City/Deer Valley area. Interest rates are very attractive and, if current rumblings at the Fed are any indication, low interest rates won't be around through 2015, as previously thought. If you are a buyer on the fence, take advantage of: the seasonally lower prices of winter; the larger inventory than we will  likely soon have; and the cheap money.

And thanks for reading my blog.

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SEAN BROWN, Associate Broker
Phone: 435.640.7111
Skype: ILiveInTheFuture