Looking at the Case Shiller Home Price Index for April 2012 and market conditions in Upstate South Carolina…
Case Shiller is another heavy weight when it comes to tracking house prices so we should be glad that yesterday’s report from them was positive. They said average home prices increased 1.3% in the month of April for both the 10- and 20-City Composites. Which is great news after 7 consecutive months of falling prices.
But the bad news is that US home prices fell by 2.2% for the 10-City Composite and by 1.9% for the 20-City Composites compared to back in April 2011. And home prices are down to levels not seen since the early 90’s according to Case Shiller! Of course, if you are buying, this is great news.
But if we look locally at Upstate SC we will see
- The Median Home Price for April 2012 is 9.9% higher than back in April 2011
- The Average Home Price for April 2012 is 3.3% higher than back in April 2011
Remember that I just posted about FNC’s report saying US home prices increased 2.4% if you compare April 2012 to April 2011. Again, this is reporting home prices for the entire US. But every bit of good news for the economy and the housing market is welcome at this point…
So let’s look at the opinions of 114 economists, real estate experts and investment and market strategists that Pulsenomics surveyed about their predictions for what the Case Shiller Home Price Index is going to do for the next several years:
Realistic? Could be but with so many different variables, it is hard to say if this groups predictions will come true. However, I would believe this report more than the recent blurb I read from Lawrence Yun, Chief Economist of the NAR:
This time next year, there could be a 10% price appreciation
It would be nice but I feel that this might be a little…over optimistic. We are going to have to see an incredible turn around in the economy and substantial improvements in the unemployment numbers to see enough demand to warrant a 10% increase in US home prices.
I think a slower increase in home prices is possible in Upstate South Carolina. Also there will be the normal increase in the spring/summer and decrease in the fall/winter. More or less I think we will see prices locally that mimic the predictions in the Pulsenomics survey. Well, God willing and the creek don’t rise…