Home prices make strong gains

A sign advertising lots for sale to build luxury homes in Deale, Md., near the Chesapeake Bay. (MCT)

By Alejandro Lazo

February 26, 2013, 7:35 a.m.

Home prices across the U.S. posted sizable increases in December, indicating the housing recovery gained momentum at the end of last year.

The widely followed Standard & Poor’s/Case-Shiller index was up 0.2% from the prior month and 6.8% year-over-year. A broader quarterly index also released Tuesday by S&P/Case-Shiller showed national home prices up 7.3% on the year.

“Home prices ended 2012 with solid gains,” David M. Blitzer, chairman of S&P’s index committee, said in a statement. “Housing and residential construction led the economy in the 2012 fourth quarter.”

Nineteen out of the 20 metro areas covered by the index posted year-over-year gains, with only New York falling. California cities also posted strong increases. San Diego rose 9.2%, Los Angeles was up 10.2% and San Francisco gained 14.4%.

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Comments (10)

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gaucho420 at 11:31 AM February 26, 2013

In my condo complex, which is just two years old, the 191 units sold out in less than 2 years, with 2BDs going for about $330k to $365k.

Over the past 6 months, six condos have resold higher than this price, at $370,000 to $380,000, including two at $380,000 in January.

Price are increasing and no, its not just investors. The economy has more jobs in it than 4 years ago, too many people are renting which is driving up rental prices, and those households which were artificially created during the recession are un-coupling, creating new households which drive up demand for rentals and owner occupied homes. On top of it, the glut of short sales and bankruptcies is dwindling, meaning the supply of under-priced homes is disappearing, which naturally brings up the price, as the low end is rising significantly.

Its basic economics folks. Learn it and live better.

Quantumrobot at 8:05 AM February 26, 2013

one should consider who is driving this insanity. Investment dollars profiting off of the profits the made in the first round of forclousures.

june1234 at 7:55 AM February 26, 2013

JP Morgan Chase just announced they were laying off 13 to 15,000 workers from their mortgage division by 2014 , not the securities one but the bread and butter mortgage issuance one. Must be part of that housing recovery JP Morgan sees down the road

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