U.S. Home Prices Continued Strong Gains in June

[mahatmakanejeeves]

Source: The Wall Street Journal.

U.S. Home Prices Continued Strong Gains in June

The S&P CoreLogic Case-Shiller Indices rose 5.1% in the 12 months ended in June, as affordability challenges persist

By Laura Kusisto
[e-mail]
http://twitter.com/LauraKusisto

Aug. 30, 2016 9:00 a.m. ET

Home prices continued to make strong gains in June, as continued price run ups put a damper on demand.

The S&P CoreLogic Case-Shiller Indices, covering the entire nation, rose 5.1% in the 12 months ended in June, identical to the increase reported in May.

The 10-city index gained 4.3% from a year earlier, down slightly from 4.4% last month, and the 20-city index gained 5.1% year-over-year, down from a 5.3% increase in May. ... Economists surveyed by The Wall Street Journal expected a 5.2% increase in the 20-city index.

After years of volatility, home prices have grown at a rate of around 5% for two years “without any signs of slowing,” said David Blitzer, managing director at S&P Dow Jones Indices. ... But price increases have been leading to a slowdown in the volume of home sales.

Read more: http://www.wsj.com/articles/u-s-home-prices-continued-strong-gains-in-june-1472562010

[Botany]

1. Does anybody remember the housing glut and the economic crisis that we were in ...

... when Obama took office?

Flat out he is one of the best Presidents this country has ever had.

[Helen Borg]

2. But this is a bubble too... Most likely.

If you live in SF, NYC, Boston, this is obvious.

[Botany]

3. Sorry I used the wrong term

Their was a glut of houses on the market and prices for homes in many areas
were crashing.

[Mika]

4. 40% unoccupied condos & apts in Miami. Building boom continues.

Reeks of derivativization and tranch ponzi schemes of 10 years ago.

[Mosby]

12. Lenders, especially banks, are writing good loans now.

Banks are using their own appraisers, requiring proof of income and have stopped offering interest only type loans.

The pricing is being driven by Realtors, just like last time, but now the qualifications have been tightened.

[Demobrat]

5. Where I live 13% of the population

can afford to buy a home. Headlines like this do not make us do cartwheels.

[GummyBearz]

7. Yea

The scam from wall street has returned. Politicians (and this includes our current administration) let all the fraud go unpunished, so the same people are still at their jobs in wall street and found a new way to commit the same fraud. Who would have guessed it?

Well, it will be fun when it gets out of control and crashes like last time so I can predictably short the home builders and banks and make money from their greed a second time.

[Kelselsius]

6. I do not consider this good news

Telling us working class slobs that owning a home is getting further and further out of our reach is not good news.
There used to be a time when people bought a house because they wanted a home. Now it's an investment. People who actually think of a house as a home are now considered quaint and out of touch. You don't buy a house to live in it. You buy it to sell it in a few years. Or "flip" it. And to hell with people who work for a living.
And now that rents are skyrocketing, without a corresponding increase in wages, we can expect a massive homeless problem within the next decade.

[GummyBearz]

8. I agree with you even though I now own a house

I was just a few years late to be able to afford a house after I graduated college and got a good job. As I watched home prices increase faster than my paycheck I got really depressed. Then I realized there was no way this can be sustainable. I took all that money I was saving for a down payment and did the exact opposite. I bought ETFs that moved inversely to the housing builders and bank stocks.

By the time the crash was over I had made enough to buy my first house... it just took 9 years, and I still think I probably over paid lol

[PasadenaTrudy]

9. Median home price in my city

as of today, is $1M. Good for sellers

[spooky3]

10. ...but only if they plan to use the sales proceeds in another, lower COL city.

They'd otherwise also have to pay the higher prices when shopping for a new home in the same place.

[PasadenaTrudy]

11. True...

Or they could just rent if they are downsizing.