Home prices climb in December, best yearly gain since 2006 (Price rise expected to persist in 2013)

Yahoo Finance ^ | 02/26/2013

[1010RD]

...with hot federal money.

[1010RD]

60-70% of Miami sales are to foreigners looking to park cash safely away from their socialist masters. 90% of those deals are all cash.

[1010RD]

Credit is tight here in Chicago.

[kanawa]

Who can buy them?

Chinese?

[Para-Ord.45]

Did not know that.

I`ve been keeping an eye on LV and the vast majority is private institutions scooping up foreclosures and immediately re-listing for 50 - 100% more than the purchase price. It`s pure speculation out there right now. An attempt to try make it look like individuals are buying hoping you take the bait and hand the real estate holders huge profits off their flip.

[1010RD]

Manipulating public perception is SOP and bankers along with the FED have a vested interest in doing so. That said, I’d hate to miss a bargain.

Keep in mind this rule of thumb:

a 1% increase in interest rates equals about a 10% drop in price to maintain the same monthly payment.

So are you buying the price or the payment?

We’re not likely to see 3% mortgages again in our lifetimes. But, if interest rates rise will your value drop?

That’s the problem the FED faces and the fundamental issue in manipulating the economy with ZIRP.

[riri]

This MAY have been true a few months ago. When I moved back to the Phoenix 'burbs in June, I needed a 30 day close. I had about 5 houses to choose from and pre-existing homes were going in one day with multiple offers. Inventory was tight. McMansions were back being built when in 2008-09, you could not give one of those massive homes away. They were selling for nearly the same price as a single story, half the size.

I just counted this morning, there are now 8 houses for sale on my immediate block and most of those have been for sale for months.