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Home Prices Climb 5 Percent

The California Association of Realtors is reporting a spike in the sale of higher-priced homes and an overall increase the statewide median price.

Home prices rose 5 percent in December and sales were up 0.8 percent from November, the California Association of Realtors reported today.

``A rush to complete sales of higher-priced homes by the end of the year to avoid an expected increase in capital gains due to the `fiscal cliff' pushed up sales of  homes priced $500,000 and above by nearly 42 percent from December 2011,'' said Don Faught, president of Los Angeles-based CAR.

The statewide median price of a single-family home climbed from $349,300 in November to $366,930 in December and was up 27 percent over the past year. According to CAR, the price increase was largely due to more higher-priced properties on the market, while inventory constraints continued to limit sales of lower-priced homes. Price increases are not expected to continue at a high pace into 2013, according to CAR analysts.

"The positive fundamentals in the housing sector continued to attract potential homeowners and investors, which resulted in strong housing sales in the fourth quarter. Sales for 2012 rose 5.4 percent, reaching 525,120 for the year as a whole, slightly above our projection,'' said Leslie Appleton-Young, CAR's vice president and chief economist.

``With sales in the higher-end market remaining strong throughout the year, the price gain at the state level surpassed our expectations, increasing 11.6 percent from $286,040 in 2011 to a preliminary $319,340 in 2012.''

- City News Service

MFriedrich January 16, 2013 at 03:56 AM
OMG, 5%? "Buy now or be priced out forever!"
JustUs January 16, 2013 at 04:01 AM
My neighbor bought in 2003 and is still underwater by a few thousand. 2013 minus 2003 = 10 years with negative equity. heh. The government is performing all kinds of tricks to keep the stock market and home prices up. Because they know that's what people look at first. heh. It's a very deceitful trick because people do not notice that grocery prices and medical costs are going through the roof due to money printing (quantitative easing). Sooner or later their bag of tricks will run out or fail. And the stock market and housing prices will plummet. And lots of people will be left holding empty bags. heh. Only the smart ones will survive. And that will only include a handful.
Marvin January 16, 2013 at 04:22 PM
EXACTLY, home prices have risen 5% since the 50% drop in the 1990-2000s? That is what is clear! Unemployment down? NO, the unemployed ran out of UI so that means they're no longer counted in the unemployment figures?? That, fact checker, is what is unclear. We are not experiencing a revival to the economy, but rather a HUGE cover-up of the real "clear" facts. Get it correct or don't bother.
MFriedrich January 17, 2013 at 05:43 PM
Meanwhile California celebrates it's millionth foreclosure (1,000,000)! http://www.foreclosureradar.com/millionth-california-foreclosure-sale/ We now only have 2 million hopelessly underwater homeowners in the state to go! Thanks CAR/NAR! Thanks Congress! Thanks Obama! - For all the "amend-extend-pretend policies (a.k.a. can kicking). You've all guaranteed that it will be years until California has a truly healthy housing market. The banks won!
Dean February 07, 2013 at 04:51 AM
Another bubble getting ready to pop.I think the deadbeat realtors write this crap like Hillary to try and make everyone feel better. Wow now the loss is only 35%

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