In recent years, the real estate market has been a constant, grim reminder of our sluggish economy, but current trends confirm that the worst is behind us. According to data released this week in the Standard & Poors/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, 20 of the largest metropolitan areas have seen home prices increase by 10.9 percent in the first quarter of 2013 when compared with the first quarter of 2012 – the largest hike in seven years.
Phoenix saw the largest annual price increase at 22.5 percent, followed by San Francisco (22.2 percent) and Las Vegas (20.6 percent).
The upward trend, which has continued over a three-month period, has sparked consumer confidence to a five-year high in May that is not only affecting home buying but also boosting homebuilders like Maracay Homes to accelerate building.
Although homebuilders are ramping up new-home construction, there is still a tight supply of homes available to a growing market of buyers, driving prices upward at a record pace, according to experts.
“Other housing market data reported in recent weeks confirm these strong trends: housing starts and permits, sales of new homes and sales of existing homes continue to trend higher,” said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “At the same time, the larger than usual share of multi-family housing, a large number of homes in some stage of foreclosure, and buying-to- rent by investors suggest that the housing recovery is not complete.”