Home Prices Rise in October by 6.3%, the Most in 6 Years

for sale sign - home pricesBy CHRISTOPHER S. RUGABER

WASHINGTON -- A measure of U.S. home prices rose 6.3 percent in October compared with a year ago, the largest yearly gain since July 2006. The jump adds to signs of a comeback in the once-battered housing market.

Core Logic also said Tuesday that prices declined 0.2 percent in October from September, the second drop after six straight monthly increases. The monthly figures are not seasonally adjusted. The real estate data provider says the decline reflects the end of the summer home-buying season.

Steady price increases are helping fuel a housing recovery. They encourage more homeowners to sell their homes. And they entice would-be buyers to purchase homes before prices rise further.

Home values are rising in more states and cities, according to the report. Prices increased in 45 states in October, up from 43 the previous month. The biggest increases were in Arizona, where prices rose 21.3 percent, and in Hawaii, where they were up 13.2 percent.

The five states where prices declined were: Illinois, Delaware, Rhode Island, New Jersey, and Alabama.

In 100 large metro areas, only 17 reported price declines. That's an improvement September, when 21 reported declines.

Mortgage rates are near record lows, while rents in many cities are rising. That makes home buying more affordable, pushing up demand.

And more people are looking to buy or rent a home after living with relatives or friends during and immediately after the Great Recession.

At the same time, the number of available homes is at the lowest level in 10 years, according to the National Association of Realtors. The combination of low inventory and rising demand pushes up prices.

Last week, an index measuring the number of Americans who signed contracts to buy homes in October jumped to the highest level in almost six years. That suggests sales of previously occupied homes will rise in the coming months.

Builders, meanwhile, are more optimistic that the recovery will endure. A measure of their confidence rose to the highest level in six and a half years last month. And builders broke ground on new homes and apartments at the fastest pace in more than four years in October.

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seattlewkr

And by the way, as an aside, jobs for people are so undependable anymore, obligating one's self to a mortgage anymore seems pretty scary for some, because you never know if your job's going to be there next month.

Times have changed.

December 05 2012 at 1:06 AM Report abuse +4 rate up rate down Reply
1 reply to seattlewkr's comment
yearsocrapleft

WERE :"STILL" IN THE MUSLIM CLOWNS "GREAT RECESSION~~ DONT BUY "ANYTHING" N TAKE ALL YOUR MONEY OUT OF YOUR BANK ACCOUNTS N CLOSE ALL ACCOUNTS , N DROP ALL YOUR STOCKS CAUSE THE MUSLIM CLOWN WILL DRIVE THIS COUNTRY INTO DEPRESSION SOON~~BUY CAN FOOD ,WATER , GUNS , N BULLETS . !

December 05 2012 at 2:37 AM Report abuse -5 rate up rate down Reply
1 reply to yearsocrapleft's comment
chris1011

Get some counseling before you bust a neck artery!

December 06 2012 at 3:16 PM Report abuse +3 rate up rate down
EzinWy

Sellers need buyers. There are more sellers than buyers. Plenty of homes for sale for whatever reason too. Lower prices and low interest rates benefit qualified buyers. Sellers are simply listing high in hopes of actually receiving what they would like to get for their sale. Ask for this; yield to this lowest number. But the biggest factor is the uncertainty of the ecomomy which is at an all time high - unpredictable. Have a job today; it may be gone tomorrow. Not a nice way to plan let alone live.

December 05 2012 at 1:05 AM Report abuse +3 rate up rate down Reply
1 reply to EzinWy's comment
yearsocrapleft

JAN~20~09~~RECORD UNEMPLOYMENT~~RECORD FORECLOSURES~~RECORD JOB LOSSES~~RECORD POVERTY~~~~~~JAN~20~13~~>4 MORE YEARS OF THE SAME MUSLIM CLOWNS GARBAGE.

December 05 2012 at 2:41 AM Report abuse -4 rate up rate down Reply
seattlewkr

Isn't it just miraculous that home prices happen to rise when interest rates are nothing, something like 3.5, the lowest in 100 years?

Surprise-surprise. Wait till interest rates increase. Then the real story will unfold.

December 05 2012 at 1:02 AM Report abuse +3 rate up rate down Reply
1 reply to seattlewkr's comment
yearsocrapleft

WERE "STILL" IN THE MUSLIM CLOWNS "GREAT RECESSION"~~DONT LET THEM FOOL YOU .....YOUR NOW LIVING IN THE MUSLIM CLOWNS ""THIRD WORLD COUNTRY"" N SOON WILL BE IN DEPRESSION . !

December 05 2012 at 2:44 AM Report abuse -3 rate up rate down Reply
American 1st

Oh wait! I think I figured out the "fuzzy" math in this article.


In 2011 you listed your house for $200,000

No buyers, so you kept dropping the price in $10,000 increments

The price gets down to $140,000

A $200,000 house down the street sells for $150,000, so you raise your price to $150,000

That's the only way I can figure it, and just because you raise your price, doesn't mean you're going to sell it for $150,000.

December 05 2012 at 12:19 AM Report abuse rate up rate down Reply
1 reply to American 1st's comment
yearsocrapleft

YOUR HOUSES ARE WORTH GARBAGE TODAY N WILL BE FOR THE NEXT 4 YEARS OF THIS MUSLIM CLOWNS GARBAGE CAUSE HE'S NOTHING BUT GARBAGE. !

December 05 2012 at 2:47 AM Report abuse -4 rate up rate down Reply
American 1st

I'm sorry, but I'm in the Housing Market and there are more houses for sale in our area than in the past 20 years that I've been in this business. Prices have not stabilized. People are accepting substantially lower offers than their already lowered list price. I just can't see it.... The increases are in Hawaii & Arizona?

December 05 2012 at 12:00 AM Report abuse +2 rate up rate down Reply
1 reply to American 1st's comment
yearsocrapleft

THE MUSLIM CLOWN DROVE AMERICA INTO ECONOMIC DISASTER N THE "GREAT RECESSION" WE ARE "STILL"" IN TODAY N WILL BE FOR ANOTHER 4 YEARS OF THIS MUSLIM CLOWNS GARBAGE~~WHEN THE COUNTRY GOES INTO DEPRESSION THAT WILL PUT A STOP TO THIS MUSLIM CLOWNS NONSENSE IN WHICH IS COMING SOON . !

December 05 2012 at 2:32 AM Report abuse -5 rate up rate down Reply
mitchnoconnell

Folks please pay no attention to our faithful dittohead yearsofcrapleft, he gets a bit confused from time to time. Speaker Boehner is not President.....YET,
Trump-Boehner 2016!!!

yearsocrapleft
PRESIDENT BOEHNER DO YOUR JOB THE AMERICAN PEOPLE VOTED YOU IN TO N PUT A STOP TO THIS MUSLIM CLOWNS ""OUT OF CONTROL SPENDING NOW"" OR ""SHUT THE COUNTRY DOWN""~~>JAN~20~09 TO JAN~20~13 ~~>RECORD UNEMPLOYMENT~~RECORD FORECLOSURES~~RECORD JOB LOSSES ~~RECORD POVERTY THERE IS NO "HOPE" N NOTHING IS GOING TO "CHANGE" . !

December 04 2012 at 11:46 PM Report abuse +4 rate up rate down Reply
1 reply to mitchnoconnell's comment
seattlewkr

Sorry, but Bush's crew set that all up before he left office. Got it all screwed up, but not for the 2 percent.

December 05 2012 at 1:04 AM Report abuse rate up rate down Reply
1 reply to seattlewkr's comment
yearsocrapleft

YOUR BLAME GAME IS DEAD ,THE MUSLIM CLOWN DROVE AMERICA INTO ECONOMIC DISASTER IN THE LAST 4 YEARS N IT WILL STAY THAT WAY UNTILL HE IS REMOVED FROM OUR WHITE HOUSE IN HANDCUFFS ALONG WITH ALL HIS TRASH ~~4MOREYEARSOCRAPLEFT""

December 05 2012 at 2:18 AM Report abuse -3 rate up rate down
mitchnoconnell

Folks this is why we in the great GOP will continue to lose elections:

yearsocrapleft
LAST 4 YEARS OF CRAP N RECORD UNEMPLOYMENT~~RECORD FORECLOSURES~~RECORD JOB LOSSES N THE MUSLIM CLOWN N DUMMYCRAPS ARE "STILL" OBSTRUCTING AMERICAS RECOVERY. !

December 04 2012 at 10:26 PM Report abuse +6 rate up rate down Reply
1 reply to mitchnoconnell's comment
yearsocrapleft

HEY FOLKS ~~SEE THE "GREAT RECESSION WE ARE "STILL" IN TODAY ~~GET READY FOR THIS MUSLIM CLOWNS "DEPRESSION" CAUSE IT WILL COMING TO A TOWN NEAR YOU SOON . ! CAUSE THE MUSLIM CLOWN N DUMMYCRAPS ARE "STILL" OBSTRUCTING" OUR AMERICAN RECOVERY. !

December 05 2012 at 2:51 AM Report abuse -5 rate up rate down Reply
cathyclar

Regarding the so-called new 3.8% tax on all home sales. That is rubbish. Please look up the truth for yourself.

http://www.snopes.com/politics/taxes/realestate.asp
http://www.politifact.com/truth-o-meter/statements/2012/jul/25/chain-email/3-8-percent-tax-real-estate-transactions-health-ca/

December 04 2012 at 9:57 PM Report abuse +4 rate up rate down Reply
j.va2

I have a hard time appreciating chicken littles out there talking about the 3.8% tax on home sales. For those that care to know the whole truth instead of the half truth snippets that some people feed you, check out this link. Of course you will have to trust the National Association of Realtors. I won't be affected by this as it appears that I will lose, not gain, on the sale of my home. Who out there is making $500k of profit selling their house?

http://www.houselogic.com/home-advice/taxes-incentives/sales-tax-home-sales/

December 04 2012 at 9:30 PM Report abuse +4 rate up rate down Reply
j.va2

I will soon need to move to take a new job, and I've had two people look at my house in 6 months. The houses in Idaho are not rising, at least in the price bracket I'm looking at in Boise. Most are dropping $10,000 at a time. One home on my watch list has been on the market 200 days today and has dropped $70,000. I regard this article as propaganda because it is not the truth (at least in Idaho) and I believe its intent is to incite an action. I have not heard of the 3.8% tax on home sales. If that is true, it will very distructive to an already fragile market.

December 04 2012 at 9:02 PM Report abuse +1 rate up rate down Reply
1 reply to j.va2's comment
yearsocrapleft

ALL AMERICANS LOSE AS THERE HOMES ARE UNDERWATER N WORTHLESS TODAY N FOR THE LAST 4 YEARS N IT WILL STAY THAT WAY FOR 4 MORE YEARS AS THE MUSLIM CLOWN TANKED OUR ECONOMY N HOUSING MARKETS N NOW WANTS TO TAX THE LIVING "HELL" OUT OF ALL AMERICANS . ! ! !

December 05 2012 at 2:56 AM Report abuse -3 rate up rate down Reply