Home Prices Continue to Rise
Posted at 8 a.m. on Nov. 28, 2012
The latest S&P/Case-Shiller home price index showed that home prices in September increased by 3% year-over-year, just above the 2.9% consensus prediction.
Bill McBride adds some context: “The YoY increase in September suggests that house prices probably bottomed earlier this year… The Composite 20 index is off 30.7% from the peak, and up 0.4% (SA) in September. The Composite 20 is up 4.7% from the post-bubble low set in January 2012 (SA).”
Financial Times: “The recovery has spread to some of the cities hit hardest by the housing crash, with prices up 1.4 per cent in Las Vegas, 1.1 per cent in Phoenix and 0.7 per cent in Detroit. Rising prices in those cities could allow homeowners to regain enough equity to refinance their mortgages, spurring consumer spending and giving the historic low interest rates engineered by the US Federal Reserve new power to stimulate the economy.”