A report from Bloomberg shows that home prices in 20 U.S. cities rose more than forecast:
Home prices in 20 U.S. cities rose more than forecast in May from a year earlier as a government tax credit temporarily underpinned sales.
The S&P/Case-Shiller index of property values increased 4.6 percent from May 2009, the biggest year-over-year gain since August 2006, the group said today in New York. Another report showed consumer confidence dropped this month to the lowest level since February.
Have the prices rose in the area where you live?
There are many factors why some areas have seen an increase while others are still lagging behind. The biggest indicator is the local unemployment rate. For home prices to rise or stay steady, jobs will need to be sustained. The areas where unemployment is still high are the ones that home prices stay low and are on the market longer.
The other big indicator on rising prices are the areas that were hit the hardest, thus dropping the home prices the most benefit the most from a percentage standpoint when the market rebounds.
As we continue into the second half of the year, we hope that new and existing home sales remain steady.
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I think they’ve actually started to calm down a little with the prices now. It was ridiculously steep about 5-6 years ago but has seemed to slowly level off. Maybe this is another wave or that house prices are just increasing in cities… They usually do tend to increase there first.