The home prices in 20 cities went up 4.6% in May compared to the previous month. According to the S&P/Case-Shiller index of property values increased 4.6 percent from May 2009, the biggest year-over-year gain since August 2006, the group said today in New York. Another report showed consumer confidence dropped this month to the lowest level since February.
A retreat in demand since the April 30 contract-signing deadline to be eligible for an incentive worth up to $8,000 raises the risk home prices will slacken in coming months. The lowest mortgage rates on record are making houses more affordable, which may help overcome some of the effect of the mounting foreclosures that are pressuring property values.
According to David Blitzer, Chairman of the Index Committee, “While May’s report on its own looks somewhat positive, a broader look at home price levels over the past year still do not indicate that the housing market is in any form of sustained recovery.”
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But of course we are still hoping for great recovery. Strategies may help that out. Thanks for the information.
Interesting news.. We’ve not seen an increase in resale home prices. A couple of our new homes subdivisions did raise prices about 2.5% but then offered more in seller incentives. Statistics… what can you do with them.
Thanks for the post…good reading
I was reading another article that mentioned this same thing with California prices rising and even selling for more than the listing price – about 7% over listing.
This is turning out to be a vicious cycle. For years, the government made credit easy so the public borrowed. The prices we have now are based on borrowed money supply which cannot be perpetuated. The problem started when the government decided to inflate the credit. When people borrow, banks create money and this inflates the money supply. This is why the government allowed home tax credits. The government should not entice people to borrow because it won’t last forever! Finally, the government is left with no choice but to perpetuate the housing bubble to save banks and to make good on its promises to foreign governments and international banking institutions.
@The Silveria Team – Really!? I hope this is the beginning of the end…