Report shows strong real estate market in February;   says it probably won’t last

dennis-norman-st-louis-radarlogic-home-prices-st-louis-realtorRadarlogic says, contrary to what other home price indicators suggest (hmm…could they mean Case-Shiller?), home prices strengthened considerably in February…. Unfortunately they also say the strength in the housing market probably won’t last

The latest housing market report by RadarLogic showed home prices in the 25 major metropolitan areas it tracks increased 1.9 percent in February from the month before (in contrast to the Case Shiller home price index which showed home prices fell a little under 1 percent from the month before) however was 3.18 percent lower than a year ago.

The report shows home sales also showed a strong increase in February with transactions in the 25 MSA’s tracked by them increasing 22.9 percent from the month before. Even though it is normal for sales in increase in February this was a larger than normal increase, with February 2012 home sales increasing 16 percent from February 2011.

The report attributes the strength in the February home sales and prices to the mild weather and investment buying, both of which they say may be temporary. Radarlogic says that since 2009 there has been a rapid increase in home sales to corporate investors. For example, in the New York metro area home purchases by corporate investors increased 126 percent from January 2009 to February 2012, in Los Angeles the increase is 421 percent and in Miami corporate purcahses increased 714 percent during the same period.

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