Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

S&P/Case-Shiller: home price increases beat expectations

Home price increases continue according to all indices, many beating expectations – welcome news for a sector hard hit by the recession.

home prices

home price

Home prices steadily climbing

According to the S&P/Case-Shiller home price index for February, home prices are steadily climbing, with the 20-city index increasing 9.32 percent compared to February 2012, and rising 1.24 percent for the month, both of which are slightly stronger readings than had been expected.

“Home prices continue to show solid increases across all 20 cities,” said David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “The 10- and 20-City Composites recorded their highest annual growth rates since May 2006; seasonally adjusted monthly data show all 20 cities saw higher prices for two months in a row – the last time that happened was in early 2005.”

“Despite some recent mixed economic reports for March, housing continues to be one of the brighter spots in the economy. The 2013 first quarter GDP report shows that residential investment accelerated from the 2012 fourth quarter and made a positive contribution to growth. One open question is the mix of single family and apartments; housing starts data show a larger than usual share is apartments.”

Comparing cities and charting progress

home prices

home price index

home prices

Housing inches closer to pre-recession normal

According to the Federal Housing Finance Agency, home prices rose 0.7 percent in February compared to January, and a whopping 7.1 percent compared to February 2012, representing the largest gain in over six years, meeting economists’ expectations for the agency’s most recent report.

Advertisement. Scroll to continue reading.

Inventory levels remain tight, and while home values are on the rise and multi-bid situations are becoming common, existing home sales fell 0.6 percent, according to the National Association of Realtors (NAR).

Buying now cheaper than renting, but…

According to the Trulia Winter 2013 Rent vs. Buy Report, buying a home in the top 100 major metros is cheaper than renting, even in light of home prices rising. The company analyzes homes for sale and rent on the site from December 1, 2012 to February 28, 2013 factoring in transaction costs, opportunity costs, and taxes to uncover that although rents and home prices are both rising, home ownership is still more affordable. Trulia says buying a home is 44 percent cheaper than renting nationwide, down just slightly from 46 percent in 2012.

“Although buying a home is still cheaper than renting, the gap is closing,” said Dr. Jed Kolko, Trulia’s Chief Economist. “In 2013, home prices should rise faster than rents, and mortgage rates are likely to rise in the next year as the economy improves. By next year, buying could be more expensive than renting in some housing markets, even for people with the best credit.”

Advertisement. Scroll to continue reading.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

1 Comment

1 Comment

  1. chatvana

    May 2, 2013 at 4:59 am

    It would be good to have a comparative analysis against unemployment and manufacturing goods report

Leave a Reply

Your email address will not be published.

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Economic News

(BUSINESS NEWS) Ben Carson's initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now?

Housing News

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as...

Housing News

(Housing News) If you own a home or are thinking of buying, you should know the factors that give you an advantage with your...

Housing News

(Housing) Realtors are tasked with being up to date on endless information, and attending the annual REALTORS Conference and Expo is a fast way...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.