Home prices increase in most major US cities

Home prices increased in September in most major U.S. cities, more evidence of a housing recovery that is providing a lift to the fragile economy.
Associated Press
Nov 28, 2012

Standard & Poor's/Case-Shiller reported Tuesday that its 20-city index of home prices rose 3 percent in September compared with the same month last year. Prices also gained 3.6 percent in the July-September quarter compared with the same quarter in 2011.

Across the nation, prices increased in 18 of 20 cities over the 12-month period. In Phoenix, prices jumped 20.4 percent over that stretch to lead all cities. Prices in Atlanta showed a modest 0.1 percent increase, ending 26 straight consecutive year-over-year declines.

Prices also rose in September from August in 13 cities. Five metro regions posted declines, while two were unchanged.

In Las Vegas, one of the hardest hit during the housing crisis, prices increased 1.4 percent — the biggest month-over-month gain. Prices rose 1.1 percent in Phoenix and Minneapolis. The largest decline was in Cleveland, where prices fell 0.9 percent.

Monthly prices are not seasonally adjusted, so some of the declines may signal the end of the summer buying period.

David M. Blitzer, chairman of the Case-Shiller index, said that when adjusting for seasonal factors, only one city showed a decline in September versus two in August. "Despite the seasons, housing continues to improve," Blitzer said.

The S&P/Case-Shiller index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The September figures are the latest available.

Steady increases in home prices have helped drive a modest recovery in the housing market. Rising prices encourage more potential buyers to come off the sidelines and purchase homes. And more people may put their homes on the market as they gain confidence that they can sell at a good price.

Higher home prices can also make homeowners feel wealthier and more likely to spend more. Consumer spending accounts for about 70 percent of the U.S. economy.

A big reason for the rebound is that the excess supply of homes that built up before the housing crisis has finally thinned out. The number of previously occupied homes available for sale has fallen to a 10-year low. The inventory of new homes is also near the lowest level since 1963.

At the same time, more people are looking to buy or rent a home after living with relatives or friends during and immediately after the Great Recession.

Those trends are also pushing up home sales and construction. Sales of previously occupied homes are near five-year highs, excluding temporary spikes in 2009 and 2010 when a homebuyer tax credit boosted purchases.

Builders, meanwhile, are more optimistic that the recovery will endure. A measure of their confidence rose to the highest level in six and a half years this month. And builders broke ground on new homes and apartments at the fastest pace in more than four years last month.

 

Comments

Contango

The "real" question is: Should you own or buy a home in a state that's in a fiscal death spiral?

OH makes the cut.

http://www.forbes.com/sites/bald...

goofus

This and the numerous other "recovery" articles just demonstrate how the state run media is so much in bed with Obozo!!!! Enough with the puff pieces!!!

The Big Dog's back

So, did we have a "state run" media when GWB was Prez?

Randy_Marsh

No the CEO of GE was not sitting in the oval office then if thats what you mean. (GE, Comcast own most of the commie networks these days and have their own chair in the oval office)

Contango

And new home sales drop:

http://www.cnbc.com/id/49993293

Welcome to the lackluster "Obama recovery."

Brought to you by the same financial "genius" who didn't know what P/E ratio meant.

http://www.nationalreview.com/ca...

Hunker down, 2013-2014's gonna be nasty.

OMG.LOL.WT_

Glass half empty or half full?

Sad, Sad, Sad,

Contango

It's not whether the glass is half full or half empty; just be thankful that you have a glass and that there's "something" in it.

I'm from the govt. and I'm here to help. LMAO!!!

"3 Key Metrics That Show Why We Can't Avoid Recession":

http://seekingalpha.com/article/...

Darwin's choice

If it's half empty, or half full, there's room for Vodka........

Randy_Marsh

A glass is never fully empty, If it is half water (Or stiff drink) the other half is filled up with air (Hot air blown from the lord and savior, Chief campaigner, President and dictatorial overlord of the drones, The one, The only , BAAAAAARRRRRRRYYYYY Soetero. Thats if you are dumb enough to ingest his rambling lies)

donutshopguy

Just trying to protect my glass.

OMG.LOL.WT_

Seriously, the reason home prices are higher is because our money has been debased, Thank you Ben Shalom Bernanke! Price of everything is higher! Shalom can mean either hello or goodbye. I would prefer the latter.

verdict

Hitting the "Like" button on OMG.LOL.WT_'s initial remarks.
I also blame Harry Reid for killing Ron Paul's Audit the Fed bill upon arrival in the Senate (after it passed the House in a landslide with bipartisan support).
Bernanke and Reid, though we can be sure there is more than meets the eye in this scenario (more people who bear responsibility for this).

Contango

I understand, but don't be too hard on Mr. Bernanke, he's been doin' what he can to help keep this economy on life support.

Take away the punch bowl and watch it crash.

The Big Dog's back

Backwards Fascist.

Darwin's choice

" Recovery " Hahahahahhahahahahahahahaha!!