Nightly News   |  August 27, 2013

Home prices on the rise: a seller’s market?

Families who have been thinking about moving are now under more pressure to do so as interest rates and home prices rise – even in the heartland. NBC’s Carl Quintanilla reports

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>>> if you've been shopping for a new home or thinking about selling one, you probably noticed the prices have been going up. in some cases we learned way up from a year ago, 19% in atlanta. nearly 25% in san francisco . and similar pictures in many major cities. is this the time to get into the market? carl cantonia is here with more for us.

>> even in the heartland we're seeing prices on the rise. that means families who are thinking of buying are under more pressure to make their move.

>> how are you doing today, sir?

>> in a housing market picking up steam. minnesota realtor ryan necessary goes door to door every week, trying to convince anyone to sell.

>> it's a fast moving market, there's a lot of buyers out there waiting for the right home to come on.

>> you have a giant fridge here.

>> buyers like ellen and george who have been looking for a home since march. unsuccessfully because there's not much for sale. even in their suburb of woodbury woodbury, where prices are up 13% in a year.

>> my husband constantly reminds me the interest rates are going up find a house.

>> the interest rates are now at a two-year high. threatening some buyers right out of their price range. if they bought this $420,000 home today, with 20% down, their mortgage payment would be $200 more than it would have been just three months ago.

>> there really is an impetus to find as much house as you can get for as little money as you can and cash in on the deal that exists right now.

>> some housing experts say the rise in rates and prices has happened too quickly, putting some markets back in bubble territory, just five years after the housing crisis began.

>> the confidence that's driving the current boom could evaporate, and more suddenly than many people expect.

>> adding stress to the single biggest financial decision most of us ever make.

>> making my wife happy. it's the most stressful thing about the whole thing.

>> one area where rising rates have already taken a bite, refinancing, they're down 16% from may, as some homeowners decide they may have already missed out on a bargain.

>> you hear about location, location, location. there's timing, timing, timing.