Wednesday 26 September 2012

Housing Values on the Rise

Posted by at 2:33 PM

More good news on the home front. The latest S&P/Case-Shiller Home Price Index indicates that home prices gained 1.6% in July compared to a year earlier. Every city tracked in the 20-City Composite has seen prices rise for three straight months and 16 of the 20 cities saw year-over-year increases. “The positive news in both the monthly and annual rates of change in home prices over the past few months signals a possible recovery in the housing market,” noted David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, in a statement.

Blitzer is the latest housing expert to toss around the “r” word. Last week, for example, the National Association of Realtors reported that existing home sales climbed about 9% nationally in August from a year earlier. “The housing market is steadily recovering with consistent increases in both home sales and median prices,” explained Lawrence Yun, chief economist of NAR.

A growing pile of data indicates that that national-level recovery is solidifying into a reality (albeit one taking dramatically different shape on a more local level across the country). In addition to the Case-Shiller index and NAR’s sales report, new home construction — a forward-looking indicator of housing market activity — is making a comeback.

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