Home Prices in 20 U.S. Cities Increased 5% in Year to March
Source: Bloomberg
by Michelle Jamrisko
9:00 AM EDT
May 26, 2015
Home prices in 20 U.S. cities rose at a faster pace than projected in the year through March, reflecting a limited number of available properties on the market.
The S&P/Case-Shiller index of property values increased 5 percent from March 2014 for a second month, the group said Tuesday in New York. The median estimate of 25 economists surveyed by Bloomberg called for a 4.6 percent year-over-year advance. Nationally, prices rose 4.1 percent from March 2014.
Higher home prices along with lean inventory and limited income growth have tempered the recovery in residential real estate. More construction, particularly of cheaper properties, would help boost supply and bring purchases within reach of more Americans looking to take advantage of low borrowing costs.
Theres a reasonable pace of gains -- its not particularly impressive or disappointing, said David Sloan, a senior economist at 4Cast Inc. in New York, whose projection for a 5.05 percent rise was among the closest in the Bloomberg survey. The economys improving. Mortgage rates are still low although theyre probably rising. Overall, the momentum will stay steady.
Read more: http://www.bloomberg.com/news/articles/2015-05-26/home-prices-in-20-u-s-cities-increased-5-in-year-to-march
Dont call me Shirley
(10,998 posts)Purveyor
(29,876 posts)Dont call me Shirley
(10,998 posts)padfun
(1,786 posts)Two years ago, I put down 5% fha loan and two months ago, I was able to refinance it to a conventional loan, and at 3.75 too. That got rid of a $190 PMI payment.
this is Sacramento where the prices were devastated in the crash and went lower than they should have. I suspect that the prices are just coming around to where they should be.
jtuck004
(15,882 posts)The Federal Reserve recently released household net worth figures and what was found in the report continues to follow the theme regarding a shrinking middle class. Wealth jumped nicely at the upper-end of the income spectrum but overall, the cubicle hamster isnt doing all that well. The recent improvement in home values has helped but this largely has helped investors since in the last decade we have gained 10,000,000 renting households while losing 1,000,000 homeowners. The figures are interesting and are already creeping up in the pontificating that comes with any political season. At the core, a healthy housing market is one where owner-occupied buyers dominate the bulk of home sales. That is simply not the case. This is how you have well paid tech workers in San Francisco cramming into a 2-bedroom apartment like a clown car simply to get by. One thing that is certain from the overall trend is that larger investors are pulling back from the market dramatically.
...
http://www.doctorhousingbubble.com/rental-armageddon-continues-net-worth-up-at-higher-end-driven-by-housing-hot-money/
Not a healthy housing market. A few people have the money to buy into an overpriced crap shack, an increasingly ownership and wealth are given, by policy, to a smaller and smaller portion of the country. Worse if you are black.
On the other hand, the bank$ter/donors and their lapdogs are just loving the fees...
MissB
(15,803 posts)over the asking price. The total inventory is seriously low too, which makes one helluva seller's market.
(Portland, Oregon)
Stallion
(6,473 posts)nm
Kelvin Mace
(17,469 posts)My wife and I are closing on a nice older house, $165K for 4BR, 2.5 bath on a 2.5 acre lot.
The prices people are paying for a place to live in major cities is just insane.