S&P/Case-Shiller Index: U.S. Home Prices See Best Yearly Gain Since 2006

Home for saleNEW YORK, Jan 29 - U.S. single-family home prices rose in November, building on a string of gains that point to a housing market that is on the mend, data from a closely watched survey showed on Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas gained 0.6 percent in November on a seasonally adjusted basis, in line with economists' forecasts.

Prices in the 20 cities rose 5.5 percent year over year. It was the strongest year-over-year price increase since August 2006.

It was the 10th month in a row that prices have increased, the longest string of gains since before the market started to turn down in 2006. Last year's rise in prices beat a nine-month consecutive run in 2009 and 2010, when the market was boosted by the homeowner tax credit.

"Housing is clearly recovering," David Blitzer, chairman of the index committee at S&P Dow Jones Indexes, said in a statement.

Prices on a non-adjusted basis slipped 0.1 percent. The non-adjusted numbers showed prices fell in about half of the cities covered by the survey, with the winter months typically a weak period for housing, the survey said.

"This is continuing a trend in place for the better part of a year," said Omair Sharif, U.S. economist at RBS Securities in New York. "This is another indication that the housing rebound is fairly entrenched at this point."

Phoenix, which saw its housing market rebound sharply last year, led with the biggest yearly gain at 22.8 percent. New York was the only city to fall, down 1.2 percent from the previous year.

Financial markets saw little reaction to the data with Wall Street focused on the latest corporate earnings.

The housing market became a bright spot for the economy last year as prices rose and inventory tightened. The sector is expected to contribute to economic growth in 2013.

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jdeysach

I work with a company in Minnesota called Midwest Credit Management Services... what we do is assist homeowners who are facing foreclosure and sheriff sales. You would be STUNNED at the number of homes that end up foreclosed on! Sometimes these people are people who took advantage of the situations when the lending was basically free and easy, but there are others who - through no fault of their own - ended up unemployed and so overqualified that they were basically unemployable. There are others (typically younger people) who were lured in by adjustable rate mortgages that required no income or asset documentation with 1.95% start rates that allowed a 21 year old to buy a million dollar house. Typically the people who end up in foreclosure that actually seek help are the ones who fall into the category of being honestly down on their luck. We list story after story like this on our website at www.mcmsus.com . Something honestly has to be done all around to fix this situation, but I don't think bailing out the banks to try to stabilize the housing market then turn that into artificially raised home values... that is part of what caused this whole mess in the first place. Instead, I would rather see it being focused on those who - again through no fault of their own - end up on actual hard times... Still I promise you, you will find more of them among us commoners than you will find among the million-dollar-golden parachute bank CEO crowd that is setting the pricing on their bank-owned homes to artificially re-inflate the values. Wow, I didn't mean to write a wall of text or a sermon, but there ya go.

January 30 2013 at 12:58 PM Report abuse rate up rate down Reply
jubileeworry

sorry about the double post

January 30 2013 at 10:41 AM Report abuse rate up rate down Reply
jubileeworry

well that is good news for housing but the really issue remains is getting the loans. After 5 years of financial mess most people have used there savings and credit. Given that and the fact that the requirements are so much more stringent such as incredible high fico scores. Here is some advice if you find any negative items on your report get it fixed. Hire a good reputable company like Lexington Law if you have to. They can remove all the bad stuff and allow you to get good credit again and start buying stuff.

January 30 2013 at 10:39 AM Report abuse rate up rate down Reply
Carl

Home prices should be going up since oil prices are high and it takes a lot of fuel to transport materials and build a new home. Also, with give away interest rates there should be a new batch of young buyers looking to lock in mortgage payments.

January 30 2013 at 9:45 AM Report abuse rate up rate down Reply
vlady1000

Prices going up in the all 4 areas I own property. As in most major corrections of any type, especially when the masses are running, there was (and stil is) an overcorrection. "be fearful when others are greedyn and be greedy when others are fearful".

January 29 2013 at 10:38 PM Report abuse rate up rate down Reply
nnanciejean

I bought a home in 2011 and the value has increased about 20% since then. Of course, it was a foreclosure and we got it very cheap and it's in the Orlando area where values are rising due to the proximity of Disney, etc. It's going to be our retirement home one day. Our main home in WI hasn't gone up at all in the last four years.

January 29 2013 at 1:20 PM Report abuse rate up rate down Reply
Iselin007

Only 9.6% unemployment in NJ an that is the U-3 rate but it doesn't make it any better now does it!

January 29 2013 at 12:13 PM Report abuse +1 rate up rate down Reply
Iselin007

I am being real not negative or falsely optimistic besides you can't sell to a middle class in decline anyway.

January 29 2013 at 11:58 AM Report abuse +2 rate up rate down Reply
Iselin007

The Sandy storm destroyed thousands of homes. The rebuilding is not a return of the housing market but byou crooks will use the New Home construction for replacement as spin to claim the housing market is making a come back. Hey explain the homes pulled off the market ? haha you idiots!

January 29 2013 at 11:53 AM Report abuse +1 rate up rate down Reply
Iselin007

They lied in 2003 about the unemployment factor ruinning the housing market but the collapse came regardless of the spin.

January 29 2013 at 11:48 AM Report abuse +3 rate up rate down Reply