Real estate investors and those with homes for sale in Lindale, TX may have some good news ahead. The Wall Street Journal reports that in the last year, home values have been increasing nationally. Last October saw a 1.1% increase in home values, which, according to a Zillow report, has been the greatest monthly increase in seven years. Zillow chief economist Stan Humphries says “We’ve reached a milestone.” The Wall Street Journal presents the following data:
Nationally, home values were up by 4.7% from one year ago, with some 26 of 30 markets seeing rising values, led by Phoenix’s gain of 22.3%, San Jose, Calif. (11.4%), Denver (10.4%), San Francisco (9.5%) and Miami (8.8%). The only cities with year-over-year declines included Atlanta (-2.4%), Chicago (-2.1%), New York (-1.2%) and Philadelphia (-0.9%).
Some of the reasons for this rise in national home values include increased home affordability and job growth. Also, lower house prices have helped to create a decreased inventory of homes for sale—making supply less able to meet demand. This, in turn, has driven up home values. And, according to Mr. Humphries, there will probably be an even greater demand for homes next year. This demand could increase as more people seek home ownership over high rent costs, as well as gain more confidence in the market. Mr. Humphries says “the bottom line is that homes are more affordable than at any time in recent memory, and buyers are seizing this opportunity.”
Note: You may wonder “how can the value of homes rise because of a drop in home prices? Aren’t they the same thing?” There is actually an important difference between home value and home price. A Tallahassee real estate blog explains the difference succinctly: “The change in average home prices are due to the buying power and posture of home buyers, whereas the change in home values is due to the relationship between supply and demand. Over the long run, home values and home prices should generally move in the same direction, but in the short run, it is quite possible for them to move in opposite directions.”
If you have any questions about national or Lindale, TX homes for sale and home values, stop by our office or give us a call today at 903-882-6683.
Lindale TX homes for sale
2808 S Main, Ste M
Lindale, TX 75771