US Home Prices Rise Most Since May 2006: Case-Shiller The S&P Case-Shiller index, which tracks the 20 largest markets in the nation, showed the biggest year-over-year gain in prices since June 2006. This marks the highest increase since the housing bubble burst, said David Blitzer, chairman of the index committee at S&P Dow Jones Indices. Home prices have been helped in recent months by a number of factors, including tight inventory of homes available for sale, near record-low mortgage rates and a drop in homes in foreclosure. A decline in unemployment is also helping the housing recovery. The housing recovery itself is helping support overall economic growth, as builders scramble to hire workers to meet the renewed demand. The lift goes beyond the impact of increased construction on the economy, as the rise in home prices lifts household wealth. The S&P/Case-Shiller composite index of 20 metropolitan areas gained 1.2 percent on a seasonally adjusted basis compared to January, topping forecasts for 0.9 percent. Despite some recent mixed economic reports for March, housing continues to be one of the brighter spots in the economy, David Blitzer, chairman of the index committee at S&P Dow Jones Indices, said in a statement. Prices in the 20 cities gained 9.3 percent year-over-year, also beating expectations for 9 percent and the biggest increase since May 2006. It is very strong, its a solid rebound, but I would not call it a bubble, said Blitzer about housing on CNBCs Squawk on the Street. Still Blitzer said the overall economic picture does not look as strong as housing. This is not an all-time boom by any means, there is a lot of hesitancy and there are a lot of foreclosed houses out there so this is not 2006 all over again, he added. Adjusted prices have been rising since last February, the first year of gains since before the housing markets collapse. The sector started to turn the corner in 2012, helped by tighter inventories and improved sales. Mortgages got more affordable again this week. The average interest rate for the most popular kind of home loan, the 30-year fixed rate, fell to 4.22%, down from 4.32% a week earlier. Source: CNN Money – Real Estate - October 2013
Posted on: Fri, 25 Oct 2013 23:57:27 +0000