Home Prices Increase Ever So Slightly For First Time Since 2010

We here at Consumerist are eternal optimists. Which is why we popped open the champagne this morning when the latest S&P/Case-Shiller index showed a .5% year-over-year increase in home prices for June, the first such uptick since late 2010.

While some would say it’s not great news that we are still 31% down from the peak prices of 2006, we would point out that a lot of homes were drastically overpriced at that point, so the latest numbers at least indicate that home prices are reaching a more realistic value.

From the Wall Street Journal:

Today, prices are rising amid sharp declines in the number of homes for sale as banks are taking back fewer foreclosed homes and traditional sellers have held out for better prices. Meanwhile, record-low mortgage-interest rates have dramatically increased the purchasing power of buyers. Also, investors have scooped up bargain-priced foreclosures that can be converted into rental properties.

“We seem to be witnessing exactly what we needed for a sustained recovery; monthly increases coupled with improving annual rates of change,” said David Blitzer, chairman of S&P’s index committee. “The market may have finally turned around.”

The index measures home prices in 20 major U.S. markets, and found year-over-year increases in 13 areas. The most dramatic increase was in Phoenix, where home prices jumped up 13.9%.

Meanwhile, home prices in Atlanta dropped by 12.1%, the largest decline in the survey. On a silver-lining note, the rate of decline appears to be slowing down in the six cities where home prices dropped.

Home Prices Post First Gain in Two Years [WSJ.com]

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  1. dush says:

    Sweet, more expensive homes will surely help people buy more houses. Not.

    On the other hand, increasing home equity might help those in need to refinance easier.

  2. eccsame says:

    I’m buying my first house because the rental market finally got to the point of being stupid. My current 2 bedroom in a mostly non-shooty Baltimore neighborhood runs $1700 a month. The house we just bought in the county will cost about $1,000 a month once you add in insurance and property taxes. Which leaves about $8000 a year to fix everything that breaks the moment we move in.

    • pecan 3.14159265 says:

      I wish my mortgage was only $1,000 a month..however, I could not live in Baltimore, even the non-shooty parts. Our rent was really stable, but we thought it was time we started looking because we didn’t see the housing market in the DC area getting that much worse – and yet we knew it could actually start rising again.

    • BorkBorkBork says:

      Renting in Vegas is starting to get crazy.

      I’d buy a house because there’s a buttload of foreclosures etc at great prices, but I don’t like living here and don’t want to be tied down. Plus, selling would be a lot harder than buying considering our housing market.

  3. nbs2 says:

    We must have gotten really lucky – we just sold out place for 12.5% gross, .16% net gain. We bought in 2009.

  4. Bendroid says:

    Yeah, Phoenix is out of control. I’m trying to buy right now and every house is owned by an investor and they want $10-$15 a square foot more than any house has sold in the neighborhood previously. On the bright side, they’re mostly not getting it. On the not so bright side, the inventory is pretty poor and the prices are climbing faster than they should be.

  5. Ask Lesko says:

    Amazing what aggregate prices do when foreclosure sales drop by 25% YoY due to voluntary moratorium.