Talking about the latest Case Shiller House Price Index & the FHFA House Price Index for May 2012 compared to Upstate SC home prices plus more…
Case Shiller Says US House Prices Increased 2.2% May 2012
Yesterday, S&P/Case-Shiller released their monthly Home Price Indices for May 2012 (3 month average of March, April and May). Case Shiller said that average US home prices increased by 2.2% in May over April for both of their 10- and 20-City Composites. However, they said that US home prices fell by 1.0% for the 10-City Composite and by 0.7% for the 20-City Composite if you compare May 2012 to May 2011.
Compare that to home prices in Upstate South Carolina:
US Consumer Confidence Higher
Always good news for real estate when consumer confidence is high. So this when we hear that The Conference Board Consumer Confidence Index rose, it should be welcome positive news. Especially since this is the first increase in 5 months.
However, Gallup’s Economic Confidence Index declined last week. Mixed signals or conflicting reports are nothing new when it comes to the economy and real estate. I doubt too many people are going to feel confident about the economy until after the dust settles from this years election. And the mess in Europe & Syria is resolved.
It is sad if low confidence means some people miss the boat when it comes to super low mortgage rates and home prices. Just because market conditions mean it is a great time to buy does not mean it is a great time for everyone to buy a home. Ignore the “Buy Now” cheerleading and do what is right for you. What is your opinion about the economy? Is it a great time for you to buy a home?
Great Time to Buy…If You Can
Not trying to discourage anyone but just because mortgage rates are super low does not mean much if you can’t get a mortgage. Consider this snippet from an article I just read:
While the historic rates mean great things for affordability, it also appears to be historically difficult to qualify for these record low rates.
Finding out if you can buy means talking to a lender. According to that article, the average FICO score for a denied loan application was 669 in May 2012. This is much higher than the 656 average for originated loans back in 2001.
Besides, talking to a lender is one of the first steps all serious home buyers take. How else is a buyer supposed to know what price range of homes to look at?
FHFA House Price Index May 2012
FHFA is, of course, tracking home prices across the entire US. Compare FHFA’s date to the home prices in Upstate South Carolina I posted above. My data does not go as far back as FHFA does but you can see we are not out of the woods in Upstate South Carolina. However, in some price ranges/areas, things are looking better.