Home Price Gains A Sign Of Market Improvement

We have long held the machinations of The National Association of Realtors (NAR) up to some ridicule. As many will note, we ignore every NAR data release due to the fact that it is certified guesswork (at best) as per the massive periodic revisions that just so happen wipe out all prior year gains.

Citing “steady employment and low borrowing rates” as well as inventories that have fallen “to their lowest post-recession levels,” the S&P Dow Jones Indices released Case-Shiller housing data that showed home prices jumping 8.1% from the previous year. When charted, the data looks like it’s been hit with a booster rocket, with the past three months’ reports showing solid year-over-year gains of 5.5%, 6.8%, and the just-reported 8.1%. All twenty metro areas covered in the index posted gains, ranging from New York’s 0.6% to Phoenix’s 23.2%.

Citing “steady employment and low borrowing rates” as well as inventories that have fallen “to their lowest post-recession levels,” the S&P Dow Jones Indices released Case-Shiller housing data that showed home prices jumping 8.1% from the previous year. When charted, the data looks like it’s been hit with a booster rocket, with the past three months’ reports showing solid year-over-year gains of 5.5%, 6.8%, and the just-reported 8.1%. All twenty metro areas covered in the index posted gains, ranging from New York’s 0.6% to Phoenix’s 23.2%.

Here are a few excerpts from a Reuters article: Existing Home Sales Fall as Prices Rise Most Since 2005 U.S. home resales edged downward in March, a pause in the housing market recovery that has helped boost the economy ...

By James Peters:Following a devastating collapse, the rebound in the housing market has been gaining attention. While homeowners, banks, and investors are pleased to see increasing home prices, many fear another repeat of the housing crisis. Many analysts and commentators are concerned over the shadow inventory and its potential impact on home prices, should there be a large influx of listings.