Home prices ticked up 0.7% in November. The Federal Housing Finance Agency tracks this data and, like Case-Shiller, it runs on a two-month delay.
That is perhaps the biggest issue. The Realtor data shows 80% of Pending Home Sales close within 60 days meaning that the home price figures are always about a full sales cycle behind.
Over a year, the data can be fairly useful. The facts are that home prices are up and home supplies are down over the past 12 month.
There are three main reasons to buy a home today:
- First time home buyer tax credit
- Home prices are low
- Mortgage rates are low
We’re inside of 90 days on the expiration of the tax credit, we’re already seeing home prices move higher, and FHA interest rates are going to rise at the termination of the Fed’s purchase program.
Homes may not be this affordable for quite some time.
Tags: Case-Shiller, FHA, first time home buyer tax credit, Home Price Index, home values, HPI, interest rates