Daily Archives: August 25, 2015

U.S. Home Prices Remain Flat in June, Case-Shiller Says | Cross River Real Estate

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U.S. home price growth remained largely flat in June, according to a report released Tuesday, a further indication that the housing market is holding steady after years of turbulence.

The S&P/Case-Shiller Home Price Index, covering the entire nation, rose 4.5% in the 12 months ended in June, slightly greater than a 4.4% increase in May.

The 10-city index saw a slightly lower gain of 4.6% from a year earlier, compared with a 4.7% increase in May. The 20-city index gained 5% year-over-year, compared with a 4.9% increase in May.

Economists surveyed by The Wall Street Journal expected a 5% increase to the 20-city index.

This month’s Case-Shiller numbers are being closely watched after Monday’s stock market plunge has some investors eyeing real estate as a more stable investment. Another important indicator, sales of new homes in July, is also set to be released Tuesday.

But economists cautioned that the report reflects the state of the housing market a couple of months ago. It doesn’t take into account whether there will be any impact from the latest market news.

“If you’re uncertain about the economy you’re not going to take your money and buy a house,” said Steve Blitz, chief economist at ITG Investment Research. “It’s just a question mark that we didn’t have before.”

David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, pointed to a major stock market drop as one potential factor that could cool off the housing market in the coming months.

“A stock market correction is unlikely to do much damage to the housing market,” he said. “A full-blown bear market dropping more than 20% could present some difficulties for housing and other economic sectors.”

Month-over-month home price gains were modest, according to the report. Not seasonally adjusted, the U.S. Index rose 1% from May to June. The 10-city and 20-city indexes saw a 0.9% and 1% change over the month respectively.

 

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http://www.wsj.com/articles/home-prices-remains-flat-in-june-case-shiller-says-1440507733

US home prices rise steadily in June | Waccabuc Real Estate

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U.S. home prices rose solidly in June, another sign of health in the housing market.

The Standard & Poor’s/Case-Shiller 20-city home price index rose 5 percent from a year earlier, a slight improvement on May’s 4.9 percent increase, according to S&P Dow Jones Indices.

Prices rose 10.2 percent in Denver, 9.5 percent in San Francisco and 8.2 percent in Dallas. Chicago posted the smallest gain, just 1.4 percent.

Strong sales have been lifting prices. The National Association of Realtors said last week that sales of existing homes rose 2 percent in July to a seasonally adjusted annual rate of 5.59 million, the fastest pace since February 2007. The Commerce Department reported last week that U.S. builders started work on single family homes in July at the fastest pace since late December 2007, the month the Great Recession began.

“The missing piece in the housing picture has been housing starts and sales,” said David Blitzer, chairman of the S&P Down Jones index committee. “These have changed for the better in the last few months.”

Still, some uncertainties weigh on the housing market. The Federal Reserve is considering whether to raise short-term interest rates, a move that might send mortgage rates higher. For now, the average rate on 30-year fixed-rate mortgages remains below 4 percent. Blitzer says a modest Fed rate increase “won’t derail housing.”

Housing is also drawing strength from a healthy labor market. U.S. unemployment is at 5.3 percent, a seven-year low.’

 

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http://www.usnews.com/news/business/articles/2015/08/25/us-home-prices-rise-steadily-in-june-as-sales-pick-up