Home Prices Creep Higher Off the Bottom
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The recent trend of rising home prices is flattening out although growth was seen for the fifth consecutive month with a slight rise in September. Nationally, home prices are back to their Autumn 2003 levels.
The S&P/Case-Shiller report today showed that nationally home values rose by 3.1% in both the 2nd and 3rd quarters of 2009. Both the 10-City and 20-City Composites posted their fifth consecutive monthly increase with September's report. Still, the index recorded an 8.9% decline in the third quarter when compared with the third quarter of 2008.
"We have seen broad improvement in home prices for most of the past six months," says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. "However, the gains in the most recent month are more modest than during the seasonally strong summer months. Fewer cities saw month to month improvements in September than in August in both seasonally adjusted and unadjusted figures."
If the economy is going to continue to rebuild itself, the rise of home prices is a key. Consumers feel more confidence as the price of their homes rise. The rising prices will also help the one-in-four U.S. homeowners who currently owe more to the bank for mortgages than their homes are actually worth.
Home prices saw growth in 11 of the 20 cities from the study, with San Francisco (up 1.3 percent) and Minneapolis (up 1.8 percent) showing the strongest gains. Cities still struggling in September include Cleveland (down 1.6 percent) and Las Vegas (down 0.9 percent). Home prices in Sin City are down 28.6 percent in the last fiscal year and down 55.4% peak-to-trough.
The battered housing market in Detroit showed signs of life with the third highest percentage growth in September, as home the Motor City’s home price index grew by 1.9 percent. The automotive capital still lags far behind the other cities covered in the index, with prices only 73% of their 2000 value.
Overall the 20-City Composite home price index is down 9.4 percent from last year, which is the smallest year-over-year decline since January 2008.
The report index Tuesday came after the National Association of Realtors reported yesterday that home sales jumped 10 percent in October as home buyers took advantage of the a special tax credit for first-time buyers.
A separate report from the Federal Housing Finance Agency showed that home prices stayed neutral from August to September.
The S&P/Case-Shiller report today showed that nationally home values rose by 3.1% in both the 2nd and 3rd quarters of 2009. Both the 10-City and 20-City Composites posted their fifth consecutive monthly increase with September's report. Still, the index recorded an 8.9% decline in the third quarter when compared with the third quarter of 2008.
"We have seen broad improvement in home prices for most of the past six months," says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. "However, the gains in the most recent month are more modest than during the seasonally strong summer months. Fewer cities saw month to month improvements in September than in August in both seasonally adjusted and unadjusted figures."
If the economy is going to continue to rebuild itself, the rise of home prices is a key. Consumers feel more confidence as the price of their homes rise. The rising prices will also help the one-in-four U.S. homeowners who currently owe more to the bank for mortgages than their homes are actually worth.
Home prices saw growth in 11 of the 20 cities from the study, with San Francisco (up 1.3 percent) and Minneapolis (up 1.8 percent) showing the strongest gains. Cities still struggling in September include Cleveland (down 1.6 percent) and Las Vegas (down 0.9 percent). Home prices in Sin City are down 28.6 percent in the last fiscal year and down 55.4% peak-to-trough.
The battered housing market in Detroit showed signs of life with the third highest percentage growth in September, as home the Motor City’s home price index grew by 1.9 percent. The automotive capital still lags far behind the other cities covered in the index, with prices only 73% of their 2000 value.
Overall the 20-City Composite home price index is down 9.4 percent from last year, which is the smallest year-over-year decline since January 2008.
The report index Tuesday came after the National Association of Realtors reported yesterday that home sales jumped 10 percent in October as home buyers took advantage of the a special tax credit for first-time buyers.
A separate report from the Federal Housing Finance Agency showed that home prices stayed neutral from August to September.
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