Annual Home Prices Up 2%, Optimism for Recovery

For the housing market, the road to recovery may be in sight with values showing a 2% increase over the last year, as revealed October 30, 2012, through S&P/Case-Shiller Home Indices.

The annual data reports increases among a composite of 20 U.S. cities, only three of which showing negative growth; Atlanta (-6.1%), Chicago (-1.6%) and New York (2.3%). 

Atlanta, despite posting a -6.1% annual rate, has shown significant improvement, better than the nine consecutive months of double-digit declines the city experienced from October 2011 through June 2012, the data reports. According to the data, Las Vegas, which has not seen growth since January 2007, finally reached positive territory with a 0.9% annual rate of change in August 2012.

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Adding to market growth potential, 19 of the 20 cities reported positive monthly growths, averaging a 0.9% rise from July-August. The single exception being Seattle, who only  posted a -0.1%.

Monthly gains posted by the 19 cities from July-August, as well as negative cities showing signs of improvement, have signaled that the market’s recovery might already be underway.

“The sustained good news in home prices over the past five months makes us optimistic for continued recovery in the housing market,” said David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. 

“News on home prices confirms other good news about housing. Single family housing starts are 43% ahead of last year’s pace, existing and new home sales are also up, the inventory of homes for sale continues to drop and costumer mortgage default rates are reaching new lows. For the fifth time in a row, both Composites had monthly gains,” Blitzer added. 

Written by Jason Oliva

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