The Case-Shiller Home Price Index came out on Tuesday and reveals that home prices increased by 4.2 percent nationally, tracking all nine Census divisions, reports Forbes.
The outlet notes that home prices accelerate in the major American cities----single-family home prices in 20 major U.S. cities rose an annual 4.8 percent in February, higher than the 4.3 percent hike in January. Another index tracking 10 cities gained 5 percent in February, compared to a 4.5 percent jump in January, adds Forbes.
A comment from Realtor.com states that the index showing home prices rose 5 percent nationwide in February this year compared to last year is in accordance with the recent report of the National Association of Realtors®. NAR announced in March that existing home sales in February had an annual price increase of 4.7 percent, as noted by Realtor.com. The only difference is that in the recent Case-Shiller study, there is also an indication that home prices do not just increase, they accelerate, too.
"Home prices continue to rise and outpace both inflation and wage gains," David Blitzer, S&P Dow Jones Indices managing director and chairman of the Index Committee told Realtor.com
From the study, the hottest markets among the 20 cities surveyed are Denver (10 percent) and San Francisco (9.8 percent) while the slowest market is reportedly Washington, D.C, posting only a 1.4 percent year-over-year increase, notes Los Angeles Times.
What the Experts Say About the Report:
Stan Humphries, Zillow chief economist, told Forbes, "Home value growth seems to have stabilized, a positive development overall, but also one that sheds light on an unchanging and ugly remnant of the housing crisis: Negative equity, as home value appreciation flattened, the negative equity rate also stabilized over the second half of last year. Roughly 17% of homeowners with a mortgage were underwater as of the end of last year, owing more on their home than it is worth, unchanged from the prior quarter. Negative equity is likely to remain a persistent feature of the housing market for years, particularly among the kinds of less expensive, entry-level homes so attractive to younger buyers."
On the other hand, Jonathan Smoke, chief economist of realtor.com®, said, "The higher prices should lead to less underwater owners and more inventory from both new construction and existing sellers in future months."
In an interview with the LA Times, Bill Banfield, vice president at Quicken Loans said, "Home prices are continuing the familiar narrative, showing modest annual gains and slow, healthy, monthly increases. Employment remains one of the most watched issues impacting the housing market as there are concerns of price increases outpacing wage growth."
