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Measure of U.S. Home Prices Rises by Most in 6 Years

by The Associated Press Oct 2nd 2012 10:15AM
Updated Oct 2nd 2012 12:42PM
Home for Sale pricesBy CHRISTOPHER S. RUGABER

WASHINGTON -- A measure of U.S. home prices jumped 4.6 percent in August compared to a year ago, the largest year-over-year increase in more than six years.

CoreLogic, a private real estate data provider, also said Tuesday that prices rose 0.3 percent in August from July, the sixth straight monthly gain.

Steady price increases, combined with greater home sales and rising builder confidence, suggest the housing recovery may be sustainable.

Other measures of home prices have also increased. The Standard & Poor's/Case Shiller index rose in July compared to a year ago, the second straight yearly increase after two years of declines. And an index compiled by a federal housing regulator has also reported annual increases.

Housing prices are rising in most areas, according to CoreLogic. Only 20 large cities out of 100 tracked showed declines in the 12 months ending in August. That compared to 26 in July. And only six states reported declines in August.

States with the biggest price increases in the past 12 months were Arizona, Idaho, Nevada, Utah and Hawaii. Prices soared 18.2 percent in Arizona, partly because the supply of homes for sale is low and foreclosure sales have slowed. Prices have risen 10.4 percent in Idaho.

The states with the biggest declines were Rhode Island, Illinois, New Jersey, Alabama and Connecticut.

The housing market has begun to rebound this year more than five years after the bubble burst.

Sales of previously occupied homes jumped in August to the highest level since May 2010. The rate at which builders started single-family homes rose last month to the fastest in more than two years. Builders have also increased their spending on single-family home construction for the five straight months. And the lowest mortgage rates on record have made home buying more attractive.

Even with the gains, the housing market has a long way back. Many would-be buyers can't qualify for stricter lender standards or save enough money for larger down payments that most banks now require. Home sales, housing starts and prices all remain below healthy levels.

CoreLogic said its measure of prices is 26.7 percent below a nationwide peak in April 2006.

Still, the broader economy will likely benefit from rising home values. When prices rise, people typically feel wealthier and spend more. And more Americans are likely to put their houses up for sale, which could further energize the market.


Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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69 Comments

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Sylvie

Surely the numbers will be revised downward soon after the election. I wonder wht that is... Hummm... lol

October 03 2012 at 5:38 AM Report abuse +3 rate up rate down Reply
kentblackdog

In truth---the housing market is only up a smidge--------------------take into account, the inflation rate of the dollars, used to set the price----you might be looking at a increase of maybe 1%

Demending upon, if you use the real inlfation rate or a doctored goverment rate, growth could actually be NEGATIVE 1 to 1 1/2%

Nice story---lots of spin and half truths

October 03 2012 at 1:07 AM Report abuse +3 rate up rate down Reply
barblc210

Why doesn't the fed do something about the high down payments the banks are requiring for purchasing a home these days. Most people don't have 20% down so a lot of houses are just sitting empty. Lower the amount required for a down payment and housing sales will move substantially which will in turn help the economy..more people would have jobs and there would be fewer homes sitting empty.

October 03 2012 at 12:36 AM Report abuse rate up rate down Reply
1 reply to barblc210's comment
chris1011

If you don't have 20% down, either go with a smaller cheaper house or rent.

October 03 2012 at 1:35 PM Report abuse +1 rate up rate down Reply
barblc210

Why doesn't the fed do something about the high down payments the banks are requiring for purchasing a home these days. Most people don't have 20% down so a lot of houses are just sitting empty. Lower the amount required for a down payment and housing sales will move substantially which will in turn help the economy..more people would have jobs and there would be fewer homes sitting empty.

October 03 2012 at 12:36 AM Report abuse -1 rate up rate down Reply
barblc210

Why doesn't the fed do something about the high down payments the banks are requiring for purchasing a home these days. Most people don't have 20% down so a lot of houses are just sitting empty. Lower the amount required for a down payment and housing sales will move substantially which will in turn help the economy..more people would have jobs and there would be fewer homes sitting empty.

October 03 2012 at 12:36 AM Report abuse -1 rate up rate down Reply
barblc210

Why doesn't the fed do something about the high down payments the banks are requiring for purchasing a home these days. Most people don't have 20% down so a lot of houses are just sitting empty. Lower the amount required for a down payment and housing sales will move substantially which will in turn help the economy..more people would have jobs and there would be fewer homes sitting empty.

October 03 2012 at 12:34 AM Report abuse -1 rate up rate down Reply
usedbmw3305

YOU MEAN AFTER THEY FELL 75% IN 08?!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! WOOPEI!!!!!!!!!!!! THEY SHOULD BE UP 100% FROM 08 DIPS! THATS LIKE SAYING YOU HAVE AIDS .....BUT ONLY FOR A COUPLE OF YEARS!...HERES A BETTER NEWS STORY.......WE ONLY HAVE A FEW MORE MONTHS TILL WE HAVE A REAL LEADER TO GET US BACK TO WHERE WE BELONG!!!!!!!!!!!!!!!

October 02 2012 at 11:35 PM Report abuse +2 rate up rate down Reply
usedbmw3305

YOU MEAN AFTER THEY FELL 75% IN 08?!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! WOOPEI!!!!!!!!!!!! THEY SHOULD BE UP 100% FROM 08 DIPS! THATS LIKE SAYING YOU HAVE AIDS .....BUT ONLY FOR A COUPLE OF YEARS!...HERES A BETTER NEWS STORY.......WE ONLY HAVE A FEW MORE MONTHS TILL WE HAVE A REAL LEADER TO GET US BACK TO WHERE WE BELONG!!!!!!!!!!!!!!!

October 02 2012 at 11:35 PM Report abuse +2 rate up rate down Reply
dave4nando

is there an echo in here?

October 02 2012 at 11:12 PM Report abuse -1 rate up rate down Reply
The Bigelow's

This comment is to "offcenterlevi" from Durham, NC. You're leaving a great deal of information from your comments. Since the top of the real estate market occurred in 2006-2007, we'd like to know what your house was worth then? Plus, the stock market just went above levels it had achieved when Bush was in office. Since you're retired, give us an update in (4) years to let us know how you are doing then.
It's great how you gave Obama credit for your stock portfolio going up only durring the period that Obama was President, but failed to let us know the value back in 2001. Then, regarding your home, you were quick to point out that it is worth over $300K today, and that it was worth $188K back in 2001, but fail to mention its value in 2008. Please fill me in on the value of your portfolio in 2008 and your house, so I can assess your comments to really determine their value. If in fact you are better off today than four years ago, I think you are the exception. I know I am not...I'm probably $20,000 worse off than in 2008, and my wife and I still work at the same employers.

October 02 2012 at 9:37 PM Report abuse +1 rate up rate down Reply