UCLA forecasts California housing recovery next year

WASHINGTON — U.S. home prices jumped by the most in 6 ½ years in December, spurred by a low supply of available homes and rising demand. Home prices rose 8.3 percent in December compared with a year earlier, according to a report Tuesday from CoreLogic, a real estate data provider. That is the biggest annual gain since May 2006. Prices rose last year in 46 of 50 states. Home prices also increased 0.4 percent in December from the previous month. That’s a healthy increase given that sales usually slow over the winter months.

Sales of previously owned U.S. homes unexpectedly dropped in March, showing uneven progress in the industry. Purchases of previously owned houses, tabulated when a contract closes, fell 0.6% to a 4.92 million annual rate last month, figures from the National Association of Realtors showed today in Washington. The median forecast of 75 economists surveyed by Bloomberg projected sales would increase to a 5 million rate. Prices climbed, reflecting more demand for higher-priced houses.

China’s recovery is in quite good shape China’s economic growth accelerated for the first time in two years as government efforts to revive demand drove a rebound in industrial output, retail sales and the housing market.

Housing experts have been raising their home price forecasts lately.  Both Bank of America and Capital Economics are calling for an 8 percent rise in 2013.

Housing experts have been raising their home price forecasts lately.  Both Bank of America and Capital Economics are calling for an 8 percent rise in 2013.

With the honey badger market continuing to be completely dislocated from absolutely every piece of underlying data (except for German hope and confidence reported earlier this morning), moments ago the NAHB housing market index printed at 46, on expectations of an increase from January's 47 to 48. This makes it the first drop in the index in 10 months, and the first drop to expectations since April 2012, which in turn sent the ES to fresh highs (don't ask).

Without a doubt, the U.S. housing market has been the most successful sector of the economy this year, and Wednesday’s Case-Shiller home price index report — which showed a fifth consecutive month of year-over-year increases in home prices nationwide — was a late Christmas present for homeowners across the country. The housing market “bottom” was one of the biggest business stories of 2012.