Home Prices in 20 U.S. Cities Increase by Most Since 2006

[Purveyor]

Source: Bloomberg

By Michelle Jamrisko - Feb 26, 2013
Home prices in 20 U.S. cities rose in the 12 months to December by the most in more than six years, a sign the housing-market recovery is strengthening.

The S&P/Case-Shiller index of property values increased 6.8 percent from December 2011, the biggest year-to-year gain since July 2006, after advancing 5.4 percent in November, a report showed today in New York. The median projection of 30 economists surveyed by Bloomberg called for a 6.6 percent advance. Nineteen of 20 cities showed gains.

Near record-low borrowing costs and gains in employment are fueling demand and boosting property values as the number of houses on the market drops and foreclosures ease. The improvement is shoring up household net worth and confidence, which may underpin consumer spending even as an increase in the payroll tax reduces take-home pay.

“The key here is it’s not as if we’re getting all the juice from one area, it’s broadly based across the country,” said Brian Jones, a senior U.S. economist at Societe Generale in New York, who correctly projected the year-over-year increase. “Rates are low, prices are attractive, so affordability is high, and the labor market is gradually healing as well. If you were in the market to buy a home, right now it’s a good time."

Read more: http://www.bloomberg.com/news/2013-02-26/home-prices-in-20-u-s-cities-increase-by-most-since-2006.html

[lonestarnot]

1. That won't last going into this weeks pigliCON nutfuckery.

[jschurchin]

2. "gains in employment"

Yeah? On what fucking planet do these idiots live?

The national unemployment rate rose slightly in January 2013, from 7.8 to 7.9 percent, according to the Bureau of Labor Statistics. The unemployment rate has hovered in that range since September 2012.

Approximately 12 million workers are currently unemployed. Of those, 4.7 million are considered long-term unemployed, having been jobless for 27 weeks or longer. They account for 38 percent of the unemployed.

http://www.ncsl.org/issues-research/labor/national-employment-monthly-update.aspx

Home prices in 20 U.S. cities rose in the 12 months to December by the most in more than six years, a sign the housing-market recovery is strengthening.

The question we have to ask is what is driving prices higher? Is it truly less inventory and more demand? Or is it corporate entities purchasing single family homes on the cheap and renting them.

This year, Waypoint signed a $400 million deal with GI Partners, a private equity firm in Silicon Valley. Gary Beasley, Waypoint’s managing director, says the company plans to buy 10,000 to 15,000 more homes by the end of next year.

http://www.nytimes.com/2012/04/03/business/investors-are-looking-to-buy-homes-by-the-thousands.html?pagewanted=all&_r=0

It's not hard to figure out what is happening, it's a shame a lot of Americans will read this bullshit from the MSM and believe it. It will be all over the evening news and the sheeple will say "All is Well"

[Sunlei]

4. good points! on a wim I tried to get a 'pre approved morgage' from my bank just to see.

They were not very interested in the lowest rates, they talked 20-30% down and about 7-9%. Then I talked about refinance my current morgage with them for the best rate. Only 5 years left to go with month to month payments. They wanted about 10k for points to refinance not very much.

These banks don't seem interested in the general public getting morgages from them where they earn tiny interest. They don't even share very easy the information about any homes the bank now owns.

I think you're right, the bank owned forclosures are going in large batches to some corporations (probably bank run) who rents them out or flips them at a much higher price than the actual bank can.

[dmallind]

5. Not universal - 10 minute phone call and in the 3s for me

Very easy and cheap money is widely available. Obviously rates will differ with amount, LTV, credit scores etc but I'm nowhere near a 1%er and looking at only 20% down.

[Kelvin Mace]

3. The bubble is re-inflated

We never learn.