Real Estate Prices up in December 2012 Nationwide and Lane County

The Register Guard reported today that home prices, on a nationwide average, shot up the most in over 6 years in December 2012, at 8.3% for the month.  Low supply of homes for sale, low interest rates and decreasing unemployment contributed to the jump in prices.  The states with the greatest real estate price jumps were all in the west.

I find it interesting to compare Lane County to the national trend.  We too were up in December, but at a much smaller rate of only 1.8% when December 2012 is compared to December 2011 (182K vs. 178.7K).  Rising prices are a good sign and point towards our real estate market in Lane County continuing to recover.  If you are interested in Lane County real estate, please contact me.

2013 Real Estate

What will the 2013 real estate market hold in store for us?  CNN-Money just released their predictions:

National 2013 housing predictions

1.  Buying will be less affordable because house prices are rising,

2.  Job rates, not housing prices will show the condition of the housing market,

3.  Mortgage delinquencies will continue to drop,

4.  Mortgage interest rates will stay at record lows, and

5.  There are fewer first time home buyers, but that might increase.

All eyes are on the housing market in 2013

All eyes are on the housing market in 2013


Of course, it’s very difficult to predict the future, at least if accuracy is important.  Even Gary Shilling, one of the nation’s most prominent real estate price guru’s got it wrong for 2012, when he said home prices would drop another 20% because of a flood of foreclosures, among other things.  Fortunately, that didn’t happen, and 2012 house prices rose nationally and locally, in Eugene Springfield Oregon.

So, how do the experts’ national predictions apply to Oregon and Eugene Springfield.  They seem right on the money to me.

The biggest factor that may affect our housing market is the State Supreme Court’s ruling and legislative changes on foreclosures, which will occur later this year.  If I had to guess, I’d say one or both will make changes that speed up the foreclosure process.  If that occurs, then more foreclosures would come on the market, taking some of the steam out of rising prices.