A key housing index shows that U.S. home prices rose solidly in June, another sign of renewed health in the housing market.
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S&P/Case-ShillerAnd the recent gains from the FHFA. Denver reported a 10.2 per cent price increase over the year, San Francisco saw a 9.5 per cent price increase, and Dallas showed an 8.2 per cent increase.
For now, rising sales and housing construction “point to a stronger housing sector”, Blitzer said. Home resales rose to an annualized rate of 5.6 million units in July, the strongest reading since 2007.
The regional breakdown for FHFA looks healthier than the headline with seven of nine regions showing monthly gains led by a 2.5% monthly surge in New England. House prices rose 5.4% from the second quarter of 2014 to the second quarter of 2015.
Month over month, the 10-city index rose 0.9%, while both the 20-city index and the national index gained 1.0%. Home prices in June were up 5% from a year earlier, little changed from May. After seasonal adjustment, prices fell 0.1%.
But Blitzer noted possible clouds looming over the housing picture: the Fed’s plan to raise its benchmark federal funds rate this year and volatility in the stock market.
On month-to-month basis, home prices in the Miami area grew 0.3 percent. Washington saw the smallest year-over-year gains in five of the last six months; San Francisco and Denver ranked either first or second of all cities in the last five months. Housing starts surged in July, and sales of new homes have been heading higher.
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Here’s the chart from Case-Shiller showing the increase in the index over the last few years.
