Everyone is running around getting ready for the big Thanksgiving holiday and here is another reason to be thankful:
Rising Home Prices
Yesterday, Case Siller released their latest report on US home prices. In their report on US home prices for September 2013 (“September” is a 3 month average of July, August and September prices), they said that US home prices are UP 13% year-over-year. Their US National Home Price Index rose 3.2% in the third quarter of 2013 and 11.2% over the last four quarters.
David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices said:
The second and third quarters of 2013 were very good for home prices. The National Index is up 11.2% year-over-year, the strongest figure since the boom peaked in 2006. The 10-City and 20-City Composites year-over-year growth at 13.3% was their highest annual numbers since February 2006.
However the talk is focused on fear of a bubble, not a rush to join the party and buy. Moreover, other data suggest a market beginning to shift to slower growth rather than one about to accelerate. Existing home sales weakened in the most recent report, home construction remains far below the boom levels of six or seven years ago and interest rates are expected to be higher a year from now.
Housing continues to emerge from the financial crisis: the proportion of homes in foreclosure is declining and consumers’ balance sheets are strengthening. The longer run question is whether household formation continues to recover and if home ownership will return to the peak levels seen in 2004
I am glad Blitzer mentioned the fears of another bubble in home prices. We are starting to hear more talk about another housing bubble. And that may be true in some areas. However, in Upstate South Carolina, I am not sure this is true. It doesn’t matter where you live, look locally to find out what is really happening with home prices.
Check out the chart showing the Case Shiller 10 & 20 City Indices:
This is great news and of all the various reports on home prices, Case Shiller is the biggest and most respected. That being said, this is definitely something to be thankful for. Don’t get me wrong though. You have to look locally and use reliable information when making decisions regarding home prices in your area.