Measure of Home Prices Increases Most in 6 Years

A measure of U.S. home prices jumped five percent in September 2012 in comparison with September 2011. This is the largest comparative growth since 2006. This increase evidences a sustainable housing recovery.

The real estate data shows that prices declined 0.3 percent from August to September, but that monthly figures are not seasonally adjusted. The monthly decline undoubtedly reflects the end of summer home-buying season and not a weakening of the housing recovery.

There have been other indications of the housing recovery in the past year, the Standard & Poor’s/Case Shiller 20-city index improved two percent in August compared to a year ago. The Standard & Poor’s/Case Shiller 20-city index is a constant-quality house price index, using data collected from repeat sales of single-family homes.

Prices gains have been uniform around the country, with prices rising in forty-three states. Some of the largest increases have been in states that suffered the worst from the housing bust. Home prices in Arizona rose 18.7 percent in the past year, home prices in Idaho jumped 13.1 percent, and Nevada’s home values increased 11 percent. CoreLogic’s price index tracks repeat sales of the same homes to see how their price changes over time.

Home builders started construction on new homes at the fastest pace in more than four years. Also, the most building permits have been requested in four years, showing that many are confident that home sales prices will continue to grow. New home sales rose to the highest annual pace in almost three years.

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Cited Sources:

Measure of US home prices rises most in 6 years, AP, November 6, 2012

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