U.S. Home Prices Rose More Than Estimated in February
by Kathleen M Howley
9:05 AM EDT
April 22, 2015
U.S. house prices rose more than economists estimated in February as the strongest labor market in seven years gives Americans the confidence to bid on property.
Prices climbed 0.7 percent on a seasonally adjusted basis from January, the Federal Housing Finance Agency said in a report Wednesday. The average economist estimate was for a 0.5 percent increase, according to data compiled by Bloomberg.
Housing demand is climbing as consumer confidence hovers close to an eight-year high. A National Association of Realtors index that measures contracts to buy homes increased in February to the highest level for that month since 2006. The number of U.S. households jumped to 2 million at the end of 2014, a nine-year high.
“As we continue to see improvement and strengthening in the labor market, we’re seeing better household formation numbers,” said Anika Khan, an economist with Wells Fargo Securities in Charlotte, North Carolina. “Jobs are the key to housing demand.”
In February and March, the unemployment rate was 5.5 percent, a level the Federal Reserve defines as “full employment,” meaning anyone who wants a job has one. The rate may fall to as low as 5 percent by the end of the year, according to projections from the central bank last month.
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http://www.bloomberg.com/news/articles/2015-04-22/u-s-home-prices-rose-more-than-estimated-in-february