Home prices rise for six months

Home prices rise for six months

U.S. home prices rose for a sixth straight month in July in the latest sign of a sustainable housing market recovery, while a jump in consumer confidence this month offered a harbinger that Americans are ready to loosen their spending.

Six years after its collapse, economists believe the housing market has turned a corner.

Two separate reports on Tuesday showed that home prices rose in July, though the gains were not as strong as the previous month. That follows recent data that home resales and groundbreaking on new properties rose in August, while business sentiment among homebuilders hit a more than six-year high this month.

The S&P/Case Shiller composite index of 20 metropolitan areas rose 0.4 percent in July on a seasonally adjusted basis. Economists had expected a gain of 0.9 percent, which would have matched June's advance. Case Shiller is one of the most closely watched barometers of the U.S. housing market.

On a non-adjusted basis, prices were up 1.6 percent.

The gain in house prices supports the view that "even with the broader economic recovery struggling to gain traction, the housing recovery is sustainable," wrote Paul Diggle, property economist at Capital Economics.

Housing has regained its footing at the same time as the broader economic recovery has lost traction. The economy grew at a 1.7 percent annual rate in the second quarter, and economists say it is not likely to fare much better in the current quarter.

Larry Kantor, head of research at Barclays Capital, said housing has the potential to give a stronger boost to the U.S. economy in 2013 as steadily rising prices reassure Americans that the housing crash is past.

"We'd not previously had a decline in house prices since the 1940s so we don't know for sure, but six months of price rises may deter people from renting," he said.

Earlier this month the Federal Reserve unleashed an aggressive stimulus program in which it will buy $40 billion in mortgage-backed securities a month until the job market sees sustained improvement.

The Fed's announcement pushed mortgage interest rates to new record lows last week, according to data from mortgage finance provider Freddie Mac.

Still, housing faces a number of hurdles, including tight lending standards for mortgages, a large number of underwater homeowners, and a large number of foreclosures still in the pipeline.


U.S. stocks were modestly higher in the early afternoon, with housing shares up 0.4 percent. The housing index is up more than 14 percent for September so far.

The day's data helped drive down prices of Treasuries, a traditional haven from risk, as it reduced worries about slowing global growth.

Also on Tuesday, consumer confidence climbed in September to the highest level in seven months as Americans were more optimistic about the job market and income prospects.

The Conference Board, an industry group, said its index of consumer attitudes rose to a reading of 70.3 from an upwardly revised 61.3 in August. It was the highest level since February and topped economists' expectations for a reading of 63, according to a Reuters poll.

With consumer spending accounting for two-thirds of economic activity, analysts are keen to see the upbeat attitudes translate into more buying.

"It does bode well for spending down the road," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

Cheerier consumers, combined with the recent rise in equities markets, could help President Barack Obama's reelection chances, with campaigning on both sides focusing on the health of the economy.

The housing market is considered a key sector of the economy.

"Housing is out of the woods and it should be making a contribution to the overall economy going forward," David Blitzer, chairman of the index committee at Standard & Poor's, told Reuters Insider.

Compared with a year ago, prices in the 20 cities were up 1.2 percent, the biggest gain since August 2010, according to the S&P/Case Shiller index.

Prices were lower than a year ago in only four cities, with Atlanta faring the worst, down nearly 10 percent. Hard-hit Phoenix continued to rebound, with a gain of 16.6 percent.

Separately, the U.S. Federal Housing Finance Agency home price index showed prices rose 0.2 percent in July compared with a 0.6 percent rise in June.

Analysts cautioned that home prices could decelerate somewhat through the rest of the year as the traditional summertime buying boost wears off.

Economists expect prices will rise 1 percent this year and 2.5 percent next year, according to a Reuters poll done at the beginning of September before the Fed announced its latest quantitative easing program.

In the consumer confidence data, the Conference Board's expectations index climbed to 83.7 from 71.1, while the present situation index gained to 50.2 from 46.5.

Consumers were more optimistic on both the current and short-term outlook for the labor market and had a more favorable view on their income prospects in the next six months.

Consumers also felt better about price increases with expectations for inflation in the coming 12 months down to 5.8 percent from 6 percent.(Additional reporting by Ryan Vlastelica and Atossa Abrahamian; Editing by Leslie Adler)

Joe Barrett



Leslie Fogle Headshot
Phone: 214-364-5888
Dated: September 25th 2012
Views: 8,585
About Leslie: I was born and raised in the Central Valley of California. I attended California State University, S...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Apr 24 2017 17359 1 - How Fast Can You Save for a Down
Money Saving Tips For Your Landscaping Budget - If you are planning to update your
15014 Homes Sold Yesterday Did Yours - 15,014 Homes Sold Yesterday… Did
Dont Get Caught In The Rental Trap - Careful…Don’t Get Caught in

Our Bloggers

Comprar Casa DFW * - 2
Gabrielle Armstrong - 5
Cara Balderas - 50
Tami Bennett - 45
Jessica Boozer - 18
Rhonda Borgne - 1
Olivia Borowski - 1
Jennifer Boyd - 2
Deborah Boyd - 390
Jamie Brannagan - 1
Kathryn Brick - 1
Annette Bruen - 20
Moira Brunken - 18
Beverly Bryant - 23
Ana Cantu - 1
Lisa Cardillo - 52
Bob Cardillo - 4
Lucina Cervantes - 11
Gregory Cornett - 2
Angela Cotten - 79
Missie Craig - 12
Greg Cunningham - 2
Sarah Dieter - 9
Belinda Duff - 5
Leah Ecob - 15
Kristine Edens - 3
Jill Elliott - 99
Laneal Ernest - 9
Nicole Espinosa - 27
Christopher Evans - 1
Heather Feragotti - 8
Mark Fischer - 2
Susan Florsch - 12
Jennifer Flynn - 8
Leslie Fogle - 101
Larry Frassinelli - 6
Chad Gabriel - 58
Shalee Garza - 10
Timothy Gilliam - 2
Cassie Gillock - 2
Christina Gonzalez - 5
Wilma Goodwin - 2
William Graves - 5
Kristen Henderson - 1
Beth Herr - 1
Hunter Howard - 1
Sandra Hunt - 89
Bill Hurd - 3
Gary Hutchings - 20
Rachel Jama - 47
Trenton Johnson - 15
Felicia Johnson - 79
Jemi Khan - 26
Leigh Klotz - 5
Amber L Johnson - 8
Michele Lafortune - 22
Wanda Lewis - 2
Stacy Lynn Massar - 27
Jennifer Menting - 17
Mikki Migis - 8
Richard Mikus - 1
Sean Moniri - 21
Naddia Morales - 10
Keith Moses - 9
Mark Mulch - 19
Erick Murphy - 6
Steve Murray - 1
Julie Nicholson - 10
Nikki Okpuzor - 3
Alan Oliver - 7
Kelly Oltmann - 4
Kaysone Orlando - 1
Holli Paddio - 3
JP Piccinini - 50
Julie Ann Pickering - 85
Ann-Marie Pope - 2
John Priestash - 5
Joshua Putman - 111
Mimi Rader - 1
Shelia Randolph - 33
Teneka Ray - 1
Go 2 Girls Realty - 173
Bethany Rowan - 15
Kristi Roy - 1
Kelly Rumney - 9
Amy Jo Saenz - 3
Linda Scardis - 4
Sandy Setliff - 213
Christine Shannon - 29
Rene Sinclair - 27
Shelby Smith - 3
Bryce Smith - 5
Monica Solkhon - 1
Rodrigo Sotomayor - 16
Jenna Stanley - 9
Kelley Stubbs - 3
Melodie Sulgrove - 1
Seana Taylor - 208
Mary Taylor - 14
Kevin Taylor - 15
Julian Taylor - 17
Erica Taylor - 52
Angela Taylor - 1
Karla Terrell - 2
Joey Thomas - 2
Jason Todd - 24
Andrea Trimble - 55
Miguel Umana - 6
Diane Velez - 17
Debbie Viverito - 132
Nick Walton - 75
Spring Weeks - 9
Michael Worley - 160
Keisha York - 30
Audra Young - 1
Debbie Zurita - 17

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

JP And Associates REALTORS
6175 Main Street #355 Frisco Texas 75034
Frisco, TX

Other Locations