It always seems like someone is talking about housing costs
going up, but that very well may be because home prices ARE always going up.

Average U.S. home prices climbed 12.95 percent in
2005 despite rising mortgage rates in the second half of last year, the Office
of Federal Housing Enterprise Oversight said on Wednesday.

Home values appreciated 2.86 percent during the
fourth quarter from the third quarter of 2005, at an annualized rate of 11.4
percent.

Prices have posted
double-digit increases on record home sales amid low interest rates and
increased buying of second homes for vacation, retirement or
investment.

Last year’s rate of
appreciation is about double the historical average of 6.4 percent, according to
Bankrate.

The housing market
appears at a crossroads, with sales slowing but prices in many regions steadily
rising.

Arizona posted the
greatest gains by a wide margin last year. Prices jumped 34.9 percent during the
period, more than 8 percentage points above the rate in second-placed
Florida.

Arizona homes are appreciating, rapidly.