US Home Prices Post First 12-Month Gain Since '10

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US home prices rose in all major cities in JuneWASHINGTON (AP) - U.S. home prices rose in June from the same month last year, the first year-over-year increase since the summer of 2010. The increase is the latest evidence of a nascent recovery in the housing market.

The Standard & Poor's/Case-Shiller home price index released Tuesday showed a gain of 0.5 percent from June 2011.

The last time the year-over-year index increased was in September 2010. For much of that 12-month period, the government was offering a home-buying tax credit.

The report also showed that all 20 cities tracked by the index rose in June from May, the second consecutive time in which every city posted month-over-month gains. And all but two cities posted stronger gains in June than May.

Detroit, Minneapolis, Chicago and Atlanta recorded the biggest one-month gains.

"The combined positive news coming from both monthly and annual rates of change in home prices bode well for the housing market," said David Blitzer, chairman of the S&P's index committee.

Jonathan Basile, an economist with Credit Suisse, said improving home prices should boost home sales further in the coming months.

"Persistent news of rising house prices should start convincing prospective home sellers that it's not just a buyers' market," Basile said. "And when Americans become more comfortable with selling their home, they also become more comfortable with buying another one."

The S&P/Case-Shiller monthly index covers roughly half of U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The June figures are the latest available.

The increases partly reflect the impact of seasonal buying. The month-to-month prices aren't adjusted for seasonal factors.

Still, a measure of national prices rose for the third straight month. Home prices jumped nearly 7 percent in the April-June quarter compared to the previous quarter.

The housing market is making a modest but steady recovery in part because homes are more affordable: Mortgage rates have fallen to near-record lows. Housing prices are about one-third lower than at the peak of the housing bubble in 2006. Those trends have helped lift sales of both new and previously occupied homes.

Sales of previously occupied homes increased in July from June, the National Association of Realtors said last week. Sales have jumped 10 percent in the past year.

Builders are growing more confident after seeing more traffic from potential buyers. Last month they applied for the largest number of building permits in nearly four years last month.

The housing market has a long way to go to reach a full recovery. Some economists forecast that sales of previously occupied homes will rise 8 percent this year to about 4.6 million. That's still well below the 5.5 million annual sales pace that is considered healthy.

Sales have been held back by a low supply of homes on the market and tight credit standards, economists said. Many would-be buyers are having trouble qualifying for loans or can't afford larger down payments being required by banks. A Federal Reserve report last month showed that many banks tightened their mortgage credit standards this summer.

Still, the housing market is steadily improving and is poised to contribute to economic growth this year. Modest economic growth and job gains are encouraging more Americans to buy homes.

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mark

Im a local realtor in orlando , A farm area I sell in is up buy 15% this year, this area last lear had 150 homes on the market and only 18 today, I have buyers but nothing to sell them, I'm working with one older lady that has wrote offers on 4 homes (last one over full price) and we were beat out with a higher offer, Its crazy! what one years time frame has done to change the market, But I'm working ,so I"m happy! being I have spent weeks on end with no buyers, Its a nice change!!! The Kind of change I have been looking for!

September 04 2012 at 3:47 PM Report abuse rate up rate down Reply
vlady1000

Definately going up in my area. And with the super low rates I just refied 2 rentals (got cash out of both too) and bought 2 more. "Be scared when others are greedy and be greedy when others are scared"

August 28 2012 at 6:08 PM Report abuse rate up rate down Reply
mchalf230

total BS here, al the houses around here are reduced in price and still not selling, heck one house has had its price reduced by over 70K and still sitting vacant

August 28 2012 at 5:12 PM Report abuse +1 rate up rate down Reply
ojeadad1

This is all media hype by the same elitists who control and run what ever puppet president will follow their agenda. A proper and correct economic driver which historically follows rising home prices is rising personal income. I think that's been missing for quite some time. This is another bubble which they haven't popped yet. when all their bubbles pop and the national debt keeps rising, economic collapse is inevitable. But... they know this already.

August 28 2012 at 3:10 PM Report abuse +1 rate up rate down Reply
jude

crock of bull: 2008 my house was valued at $240,000 and I paid property taxes on that amount
since 2009 it has gone down hill 2011 to $81,482, 2012 $64,781and I still owe $90,000.00

August 28 2012 at 2:23 PM Report abuse rate up rate down Reply
vobox3343

Obama 2012. "Just think what he could do if the Republicans weren't obstructionists.

August 28 2012 at 12:38 PM Report abuse +2 rate up rate down Reply
2 replies to vobox3343's comment
pdbliz

OBAMA,,THE FIRST 2 YEARS,,,HAS THE DEMOCRATE CONGRESS,,,,,,HE DID NOTHING,,,THEY VOTED MOST OF HIS OWN BILLS DOWN,,/...HIS OWN PARTY.!!!!!

August 28 2012 at 1:57 PM Report abuse rate up rate down Reply
cozypaws

He would make it into a SOCIALIST COUNTRY

August 28 2012 at 3:48 PM Report abuse rate up rate down Reply
2 replies to cozypaws's comment
ohmyboehnertwo

We would have millions of infrastructure jobs right now but the party of no blocked it last fall.

August 28 2012 at 4:35 PM Report abuse rate up rate down
mrspelosi

Ohmyb darling, it just pains me so to see you wandering through life in such a state of confusion doll. President Obama has been such a great disappointment and that has you out of sorts dear.
How sad and unfortunate for you.

August 28 2012 at 7:52 PM Report abuse rate up rate down
George

Wow! Guess that devalued home that dropped from $440k to $237k must have moved up to $238 now. My wife will be over joyed with the new high value. Do hope it is an indication of good news for the country but I sincerely doubt it. As my hero SASHA said below about "in spite of the doomsters" the economy is going to tank worse if the "falling off a cliff" accoding to the congressional wonder Harry Reid has been saying about the economy happens since CONGRESS has a deadline that will make the economy real dead if it allows their AUTOMATIC cuts happen. Litteraly thousands of defense contractors/sub-contractors and various vendors from top to bottom will tank and you will see the UNEMPLOYMENT figures rise at least .6% and that doesn't include the cost in jobs from other agencies cuts. Plus 100,000 Army and Marines are being cut with no signs of JOBS in their future.
And on the housing market: As was said, if you can't sell what you own how the heck can you afford to buy. This type market puts the once average buyer out of the market, reduces possible sales to only the 1 percenters as liberals like to call them, and the construction folks will remain unemployed!! Wihtout a housing market employment will not get better along with other major closing that have been announced over the past 8 months as the "non-working, king of campaigners" and congress have done NOTHING about JOBS, ECONOMY or DEBT. No decisions from the worthless elected and they plan on doing NOTHING until after the election except for a last minute "CONTINUING RESOLUTION" and wait for the new congress to take up the problem which means no NEW $$ down to the small businesses until MARCH 2013!!
Don't believe, come back into this chat in March and I will laugh myself sick because this sucks being right!!

August 28 2012 at 12:09 PM Report abuse rate up rate down Reply
a2004ssr

Great time to buy a brand new builder home , builders are offering many incentives along with paying closing costs. Interest rates of 3.5% make it a great time to build !!

August 28 2012 at 11:55 AM Report abuse +3 rate up rate down Reply
1 reply to a2004ssr's comment
pdbliz

YOU ARE CORRECT,,,BUT,,WATCH OUT FOR CHINEESE DRYWALL....

August 28 2012 at 1:57 PM Report abuse +2 rate up rate down Reply
sasha

The economy is coming back, in spite of the doomsters. Sadly, if Romney wins and it gets better he will get all the credit.

August 28 2012 at 11:48 AM Report abuse rate up rate down Reply
2 replies to sasha's comment
pdbliz

SADLY,,,,,,,,ALL THIS IS LIES,!!!!!! 20,TRILLION IN DEBT AND COUNTING...
WHERE IS YOUR MATH SKILLS.!!!!

August 28 2012 at 1:59 PM Report abuse +1 rate up rate down Reply
jdykbpl45

Got hope? No? Time for a change!

August 28 2012 at 4:17 PM Report abuse rate up rate down Reply
donut999

I guess any good news is just good, but this hardly worth getting the marching bands out. In rough numbers, a 1/2 of a percent means a house that was worth $99,500 June 2011 is worth $100,000 June 2012. Big woo. The investors are definitely in and have cherry picked the most distressed properties leaving them having to pay a tad more forward. Frank makes a good point on underwater homes. If you can't sell, you obviously can't buy. Most cannot even re-fi. As the phamtom inventory works itself on to the market, expect some reversals or these minimal gains.

August 28 2012 at 11:34 AM Report abuse rate up rate down Reply