Home prices in the fourth quarter of 2012 showed a rate of annual appreciation greater than in any quarter since the end of 2005 the National Association of Realtors® (NAR) reported. There were 133 metropolitan areas in which median prices rose during the quarter out of the 152 tracked by NAR.  Prices increase in 120 areas in the third quarter and only 29 one year earlier.  Twenty-nine areas posted price declines in the recent period.
 
The median price of an existing single-family home was $178,900 in the fourth quarter, up 10.0 percent from $162,600 in the fourth quarter of 2011. The annual increase in the third quarter was 8.8 percent. In the fourth quarter of 2005 the median price increase was 13.6 percent.  NAR uses median price, where half of the homes sold for more and half sold for less, because average prices can be skewed by a relatively small share of upper-end transactions.  The median price of a condo/cooperative was $179,900, an increase of 12.2 percent since the fourth quarter of 2011.  Condo prices increased in 47 metro areas.
 
Some of the price increases arise from a smaller market share of lower priced homes.  The share of foreclosures and short sales, which usually sell at deep discounts, fell to 23 percent of sales in the fourth quarter compared to 30 percent a year ago.
 
Fourth quarter existing-home sales rose 5.0 percent to a seasonally adjusted annual rate of 4.90 million in the fourth quarter from 4.66 million in the third quarter, and were 12.1 percent above the 4.37 million pace during the fourth quarter of 2011.  The last time there was a higher rate of existing home sales was 4.95 million in the fourth quarter of 2009.

The unsold inventory of existing homes was at the lowest level since January 2001.  At the end of the fourth quarter there were 1.82 million existing homes available for sale, which is 21.6 percent below the close of the fourth quarter of 2011 when 2.32 million homes were on the market. 

NAR's national annual Housing Affordability Index, established in 1970, rose to a record high 193.5 in 2012 from 186.4 in 2011.  The index is calculated on the relationship between median home price, median family income and average effective mortgage interest rate.  An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent downpayment and 25 percent of gross income devoted to mortgage principal and interest payments. .  The higher the index, the stronger the household purchasing power.

 "The housing affordability index shows that the national median income of families was almost double the income needed to buy a median-priced home in 2012, so most buyers are able to stay well within their means," said Lawrence Yun, NAR chief economist. Despite rising prices the index is expected to average 161 in 2013, which would be the third best on record.

For more information about The Woodlands houses for sale, please call realtor Luis Tamborrel at (832) 482-9367.

Hablamos Español y tenemos información acerca de propiedades en The Woodlands, sólo comuníquese al 55.4991.4933 o Nextel 72*13*9814 desde México.

Source: mortgagenewsdaily.com