We have yet another positive
housing report that shows continued growth in home prices. Data provider
CoreLogic says home prices increased 8.8% in May compared to a year
earlier. So, that means that the
average homeowner enjoyed an 8.8% appreciation rate over the past 12 months.
On a month-to-month basis, prices rose 1.2 percent from April to
May. But CoreLogic's monthly figures aren't adjusted for seasonal patterns,
such as warmer weather, which can affect sales.
Prices increased the most in Western states, including Hawaii,
California and Nevada.
Last week, we reported that Pending Home Sales shot up
6.1% and the continued gains in housing are helping more and more homeowners
climb back into positive equity territory. This new release supports
pricing gains from other reports such as the Case-Shiller Home Price Index
(+10.8% on a yearly basis) and the FHFA Home Price Index which showed a yearly
gain of +6.6%. Regardless of which reading is the most accurate,
consumers are now starting to understand that the likelihood that they will
loose money after purchasing their next home has diminished greatly.
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