"U.S. home prices rose 6.3 percent in October compared with a year ago, the largest yearly gain since July 2006. The jump adds to signs of a comeback in the once-battered housing market."
Steady price increases are helping fuel a housing recovery because they encourage homeowners to sell and buyers to purchase while the price is right.
The California Association of Realtors also reported that pending homes sales in California posted gains from both the previous month and year in October for the first time in 7 months.
Even hard hit home builders are optimistic about the future with builder confidence up and in October, they broke ground on new homes and apartments at the fastest pace in more than 4 years.
With continuing record low mortgage rates and the fact that there are fewer homes available, the real estate market continues to show signs of a sustained recovery.
According to the National Association of Realtors, inventory numbers are at their lowest level in 10 years. And low inventory and increased demand equals an uptick in prices.
(Sources: Monterey County Herald, 12/5/12; San Jose Mercury News, 12/3/12)
