Sunday, December 4, 2016

US home prices hit new peak

The prices of homes are 5.5 percent higher than September 2015. This index has now surpassed its peak in July of 2006. The nations 20 largest cities reported a 5.1 percent annual gain. "This gain will mark a shift from the housing recovery to the hoped for start to a new advance"-David M.Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.
Still another new read on home prices, looking at October values, also shows a hefty jump from a year ago. Zillow's Home Value Index shows home values nationally up over six percent compared to a year ago. Competition for homes is so fierce that less than half of buyers get the first home they make an offer on, according to the report. So the housing market has been favoring sellers and we see this trend continue over the last couple of months. 
http://www.cnbc.com/2016/11/29/us-home-prices-hit-new-peak-in-september-sp-corelogic-case-shiller.html

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4 comments:

  1. UnknownDecember 4, 2016 at 8:32 PM

    It is interesting to see how the housing market its stabilizing again after the 2009 crisis. It would be interesting to know if the growth that this article shows of 5.5 percent is going to be a constant or if there is a possibility that the market crashes again and that there is another recession because of this. Also it would be interesting to know how constructing is recovering, because since after 2009 there were a lot of houses that people were just walking away from, it would be interesting to know if the construction market has also recovered from this crisis.

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  2. UnknownDecember 4, 2016 at 8:51 PM

    While I'm sure it is problematic for some people, it is nice to see that there has been an increase in demand for homes. I feel like since I can remember, people's outlooks on buying/selling homes has been so negative.

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  3. UnknownDecember 4, 2016 at 10:40 PM

    One market which has significant recovery, shocking analysts in the process, is the Phoenix, Arizona housing market. A market which was over saturated with houses built by speculative developers, is now experiencing somewhat of a supply shortage. With improved consumer sentiment and market activity in an area which was effected worse than any other part of the country, the outlook for the nations housing situation as a whole looks great. Some might fear another housing bubble, but this growth has been built on a more sound, and structured mortgage and house sale system.

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  4. Bill GeorgeDecember 5, 2016 at 8:51 PM

    An interesting piece of this demand growth is made up by first-time home buyers looking for starter homes. Due to short supply of these homes, their prices are rising, however so are the number of builders. It is interesting to see how the age distribution of the population can impact housing demand.

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