Home prices gain for fifth month in June: S&P

by 28 Aug 2012

(Reuters) - Home prices rose more than expected in June, the fifth month in a row of gains in a fresh sign of improvement in the housing market, a closely watched survey showed on Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas gained 0.9 percent on a seasonally adjusted basis, topping economists' forecasts for 0.5 percent, according to a Reuters poll.

On a non-seasonally adjusted basis, prices were even stronger, up 2.3 percent.

"We seem to be witnessing exactly what we needed for a sustained recovery; monthly increases coupled with improving annual rates of change," David Blitzer, chairman of the index committee at Standard & Poor's, said in a statement.

"The market may have finally turned around."

Prices in the 20 cities rose 0.5 percent compared to the year before. Atlanta fared the worst, tumbling 12.1 percent from a year ago. Phoenix continued to bounce back from poor conditions and was up nearly 14 percent.

Although prices in June likely got a boost from the traditionally strong summer buying season, the gains on both a monthly and yearly basis boded well for the housing market, said Blitzer.

Read full article from Reuters


  • by William Matz | 9/2/2012 12:53:10 AM

    First, when prices have dropped 50% or more, increases of .9% or 2.3% are negligible. Better than drops, of course.

    Second, having just reviewed an extensive dissection of Case-Shiller data, I noticed a curious thing. Regardless of how high prices got in the bubble, nearly all areas have returned to prices that are about 150% of 2000 levels. The areas that rose much higher have fallen more. Areas that rose less have fallen less. But all except basket cases like Detroit are oddly back to about the same 140-160% of 2000 prices.


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