Harsh Winter Hinders Homebuyers
This winter's frigid weather had a negative impact in the pricing of homes in January.
Chairman of S&P Dow Jones Index Committee David Blitzer stated, "The housing recovery may have taken a breather due to the cold weather". Warm climate cities experienced price increases of at least 0.4% including Miami, San Francisco, San Diego, Tampa and Las Vegas. Out of the five cities that were hindered by the deepest dip in prices, were the four cold metropolises of Detroit, Minneapolis, Boston and Chicago. Seattle was also included in the five.
However, housing figures are on their way up. Compared to last year, prices increased 13.2%, on a national level. But currently they are slowing down. January's figure is the lowest in the 12-month period since August. It's highest 13.7% figure in November, was viewed as unsustainable by experts in the housing industry.
Over last year, property values have been assisted by a foreclosure and unemployment rate decline. The demand is bigger than the supply at this time. In addition to freezing temperatures, high mortgage rates are an element of the current purchasing process.
Today, the Census Department revealed that new home sales in February decreased by 3% compared to last month, and also resulted in a decline regarding last year's same time period. The Northeast's harsh winter had the biggest negative impact on housing sales, with a 30% decline in year-prior rankings and last January.