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Posts Tagged ‘case shiller index’

S&P Home Price Index keeps Climbing

May 1st, 2013 Comments off

CNNMoney informs MHProNews the S&P Case-Shiller index of home prices in 20 major markets rose 9.3 percent in Feb. over the last 12 months, an increase from January’s 8.1 percent rise, and the biggest gain in home prices since May 2006. Over a five-year period through May 2012, the index showed a decline almost every month, but since then the index has risen each month. Home price increases allow more people to refinance, which helps the underwater borrower. In addition, lower house payments allow borrowers to spend money on other items, which buoys the overall economy. However, analysts note even with the increase over the last 12 months, the index remains 28 percent below the index peak of 2006.

(Image credit: HousingWire)

Home Prices Post Largest Gain in Two Years Plus

November 30th, 2012 Comments off

According to the S&P/Case-Shiller Index, home prices registered the largest gain in over two years, moving up 3.6 percent in the third quarter over Q3 2011. CNNMoney reports the increase was the biggest since the second quarter of 2010 when the homeowner’s tax credit of up to $8,000 ended. A drop in foreclosures to a five-year low, an improving jobs market and record low interest rates have sparked home sales and home building. Dean Baker, of the Center for Economic and Policy Research, says “We’ll probably do better than inflation for the next few years, and people who have been underwater on their mortgage will get out from that, and build some equity.” Only Chicago and New York of the 20 markets surveyed showed a modest price decline from a year ago. As MHProNews has learned, Phoenix, AZ, which was one of the hardest hit cities following the housing crash, experienced the largest increase, with prices 20.4 percent higher than last year.

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Composite Metro House Values Edge Up

October 31st, 2012 Comments off

Standard & Poor’s Case/Shiller Index reports in HousingWire U.S. home prices nudged up 0.9 percent in August over July in 19 of the 20 metro areas surveyed. Overall, the ten-city composite index saw an annual price increase of 1.3 percent, while the 20-city composite climbed two percent over last year. Individually, Phoenix experienced an increase of 18.8 percent in home values from a year ago, posting its fourth consecutive double-digit rise in home prices. MHProNews has learned three cities registered annual losses in home values: Atlanta fell 6.1 percent, New York declined 2.3 percent, and Chicago dropped 1.6 percent. David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, says, “ News on home prices confirms other good news about housing. Single family housing starts are 43% ahead of last year’s pace, existing and new home sales are also up, the inventory of homes for sale continues to drop and consumer mortgage default rates are reaching new lows.”

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JPChase: Chasing Bulls?

July 12th, 2012 Comments off

Standard & Poor’s Case-Shiller Index showed slowing declines in home prices earlier in the year, and Zillow‘s survey of economists are expecting an 0.4% decline through this year, but JPChase analysts say the 4.8 million homes in the shadow inventory will drag prices down another two percent this year as more enter the foreclosure market and are sold. But next year begins an optimistic recovery that will lead to a home price rebound of 12% over the next four years. As HousingWire tells MHProNews.com, Chase says over 2.5 million problem loans will be resolved this year, which will reduce the number in the shadow inventory. The analysts report adds, “Given the large supply and volume of continuing delinquencies, we expect it will take years to work through all the defaults, but significant progress is being made, which gives us reason to be more bullish on housing than we have been for years.”

(Image credit: FotoSearchImages)

Middle-class Americans Net Worth Falls

June 19th, 2012 Comments off

Because so much of the net worth of middle-class Americans is connected to home equity, the housing downturn led to household net worth falling from $102,844 in 2005 to $66,740 in 2010, as house prices have fallen 35% below their peak in 2006, according to Standard & Poor’s/Case-Shiller index. While the drop in net worth cut across all age groups and education levels, HousingWire says households between 35 and 44 took it on the chin—their net worth fell 59%. Those younger than 35 lost 37%, while the 65 and older set lost 13%. Households that had a high school diploma lost 39%; the net worth of those with a bachelor’s degree saw a 32% drop.

(Graphic credit: HousingWire)

Economic Recovery without the Housing Market?

February 6th, 2012 Comments off

GlobeandMail of Toronto tells MHProNews.com the economic recovery in the U.S. is beginning without help from the housing market. Recovery from economic slumps going back decades meant the real estate market pulled everyone else along, according to columnist Brian Milder. Karl Case, who co-developed the S&P Case/Shiller Index that tracks residential real estate prices in the U.S., says,“The fact that we’re doing it without the housing market is really astounding.” Prof. Case estimates that every dollar spent on a new home generates $1.40 throughout the economy. He says for 30 years the instrument of monetary policy was lower the interest rate to stimulate home building, raise it to stem too fast of growth. Now, he says, “…it’s non-existent. We overbuilt. We overpriced. We’re not producing anything.” The housing sector used to account for six percent of the U.S. economy. It now accounts for two percent. “That’s hundreds of billions of dollars just wiped out,” he adds. Meanwhile, Canadian wood panels producer Norbord Inc., although posting a fourth quarter 2011 loss, sees the U.S. market slowly recovering. Rising materials costs and the weak U.S. housing market hurt their bottom line. Their oriented strand board (OSB) is used for roof sheathing, walls and floors.

(Graphic image: (GlobeandMail)