Home Prices Rise, Seller's Market Makes Comeback

Average home value rose 5.5 per cent in November compared to one year ago.
3:10 | 01/29/13

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Transcript for Home Prices Rise, Seller's Market Makes Comeback
Here is the big news tonight and it affects every homeowner in america. We learned today home prices, which drive so much of the economy, rose more last year than any time since that housing bubble. Prices surging to their highest point in six years. So, is now the time to sell? Or will the value keep rising? Abc's david muir here right now. David? Reporter: Big questions tonight, diane. And the real estate experts i talked to cede said if the value of your home is completely recovered from the recession, then it might be a great time to sell. Not a lot on the market, to a seller's dream. But even if you are not going to sell, economists say these housing numbers tonight are good news for you, too. This spike in home prices unthinkable just two years ago. Economists who study prices across 20 american cities tonight revealing they see the biggest increase year to year in more than six years. Home values up 5.5%. Barbara come ran founded the largest real estate company in new york. We haven't seen this in probably seven years. Reporter: So, what has buyers lining up? Those historically low interest rates, still at lows not seen SINCE THE EARLY 1970s. Hi, abc. Reporter: We first met this family in ann arbor, michigan, when they bought their new home. The reason they went for it? It was a steal. Reporter: Ten months in a row now of housing prices going up. Up most in phoenix, nearly 23%. This home in scottsdale, arizona. Had it been listed a year ago, $275,000. She listed it now for $365,000, nearly $100,000 more than the value last year. Also on the seller's there just aren't many houses out there. Many americans who want to sell simply won't yet. They need to wait for their home value to recover completely. Many still underwater and their mortgage. Listen, nobody wants to go to the clo table and pay the bank to get out of a house. Everybody is waiting it out until the value of their home increases just a little bit more. Reporter: They are going to wait for the value to come back. Absolutely. Wouldn't you? Reporter: As they wait to sell, many builders are trying to keep up with demand. Look at this image from florida. Sorry, too late, sold. Doug smith, a builder in virginia today, checking in with "world news." We sold 43 homes in the month of january. Makes it the best january for us since 2005. Reporter: In fact, his company, miller and smith, employed 150 people during the housing boom. Then cut its staff by nearly half to 85 during the collapse. Tonight, they tell us, they're back up to 115 employees. We loved hearing that. Employees returning to the job there in virginia. And economists point out our homes are our biggest investm investment, so when the price goes up, it ups consumer confidence. The dow closing the highest in five years. Tell me more about the buyers. Why are you flooding the market right now? Reporter: Barbara saying the number one motivator, fear. They don't want to miss out. That is why they are bidding each other out. Moving fast. Okay, thank you, david. And now we move onto

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