Median Home Sales Price Is Up 12%

Median home prices rose 12% over October 2012, making 21 consecutive months of year-over-year price and sales increases, a survey from Re/Max says.

The markets with the largest year-over-year price gains include some of the areas hit hardest during the downturn like Detroit, up 45%, Atlanta, 37%, Las Vegas, 32%, and Orlando, up 27%. San Francisco was up 24%. It remains to be seen if these price increases are sustainable. Some observers feel we could be heading towards a new housing bubble.

Overall, 45 of the 52 markets surveyed reported price gains over October 2012.

There were nearly 3% fewer homes sold in October compared with September, but over 2% more were sold on a year-over-year basis, Re/Max says.

Home buying activity is returning to a traditional seasonal pattern, and thus a more normal market, says Margaret Kelly, Re/Max chief executive. Sales should slow in the winter months before starting the next growth cycle during the spring.

Of the 52 areas Re/Max surveyed, 19 had double-digit year-over-year sales gains, including New York at 33%, Trenton, N.J., 33%, and Anchorage, Alaska, 24%.