U.S. home prices rise in October by most in 6 years
WASHINGTON (AP) - A measure of U.S. home prices rose 6.3 percent in October compared with a year ago, the largest yearly gain since July 2006. The jump adds to signs of a comeback in the once-battered housing market.
Core Logic also said Tuesday that prices declined 0.2 percent in October from September, the second drop after six straight monthly increases. The monthly figures are not seasonally adjusted. The real estate data provider says the decline reflects the end of the summer home-buying season.
Steady price increases are helping fuel a housing recovery. They encourage more homeowners to sell their homes. And they entice would-be buyers to purchase homes before prices rise further.
Home values are rising in more states and cities, according to the report. Prices increased in 45 states in October, up from 43 the previous month. The biggest increases were in Arizona, where prices rose 21.3 percent, and in Hawaii, where they were up 13.2 percent.
The five states where prices declined were: Illinois, Delaware, Rhode Island, New Jersey, and Alabama.
In 100 large metro areas, only 17 reported price declines. That's an improvement September, when 21 reported declines.
Mortgage rates are near record lows, while rents in many cities are rising. That makes home buying more affordable, pushing up demand.
And more people are looking to buy or rent a home after living with relatives or friends during and immediately after the Great Recession.
At the same time, the number of available homes is at the lowest level in 10 years, according to the National Association of Realtors. The combination of low inventory and rising demand pushes up prices.
Last week, an index measuring the number of Americans who signed contracts to buy homes in October jumped to the highest level in almost six years. That suggests sales of previously occupied homes will rise in the coming months.
Builders, meanwhile, are more optimistic that the recovery will endure. A measure of their confidence rose to the highest level in six and a half years last month. And builders broke ground on new homes and apartments at the fastest pace in more than four years in October.
Core Logic also said Tuesday that prices declined 0.2 percent in October from September, the second drop after six straight monthly increases. The monthly figures are not seasonally adjusted. The real estate data provider says the decline reflects the end of the summer home-buying season.
Steady price increases are helping fuel a housing recovery. They encourage more homeowners to sell their homes. And they entice would-be buyers to purchase homes before prices rise further.
Home values are rising in more states and cities, according to the report. Prices increased in 45 states in October, up from 43 the previous month. The biggest increases were in Arizona, where prices rose 21.3 percent, and in Hawaii, where they were up 13.2 percent.
The five states where prices declined were: Illinois, Delaware, Rhode Island, New Jersey, and Alabama.
In 100 large metro areas, only 17 reported price declines. That's an improvement September, when 21 reported declines.
Mortgage rates are near record lows, while rents in many cities are rising. That makes home buying more affordable, pushing up demand.
And more people are looking to buy or rent a home after living with relatives or friends during and immediately after the Great Recession.
At the same time, the number of available homes is at the lowest level in 10 years, according to the National Association of Realtors. The combination of low inventory and rising demand pushes up prices.
Last week, an index measuring the number of Americans who signed contracts to buy homes in October jumped to the highest level in almost six years. That suggests sales of previously occupied homes will rise in the coming months.
Builders, meanwhile, are more optimistic that the recovery will endure. A measure of their confidence rose to the highest level in six and a half years last month. And builders broke ground on new homes and apartments at the fastest pace in more than four years in October.
So housing is budging up... OK.. How is that good for first-time home-buyers? Usually we WANT falling prices (at the store, for example) where we consider less expensive to be better. Also, it is a "real" price move, or just the start of the impending surge in inflation from the Fed printing (trillions of dollars of new) money? WHY things are moving a bit might seem to be important, beyond simplistic speculation on interest rates.
Remember the good ole days when the Sunday Seattle Times want ads consisted of page after page after page of jobs. Now, you're lucky if it's 4 pages total. The outsourcing of American jobs and "globalization" have been disastrous to the US and middle class America.Â
Real estate salesmen are the most optimistic people on the planet. If only it was real Dorothy!Â
Get rid of Zillow and things would turn around a lot faster. When banks get their information from a website that allows sellers to adjust home values, it's bad for all of us.
 @JK15 It's not just the banks. The general public actually believes the dung they find on those websites.
It's always great to hear how well real estate is doing, as reported from the industry itself. Think they have any stake in it? The very same industry that gave you the real estate bust.
Would love to see the job market return to what it was 6 years ago. A booming economy!Â
It might if the Republicans don't screw up the fiscal cliff.
 @mstipton Ah the Republicans were in power 6 years ago?! So who is screwing up?
 @quidproquo Yep, I agree.
 @Grumpa Both sides are guilty of the tax cuts over the last 30 years that have steadily driven us further into debt and the policies that have hurt the american manufacturing and work force over the last 30 as well.
Uh, maybe artificially low interest rates have something to do with it, creating a housing bubble.... again. Or inflation due to the 24/7 printing of fiat currency? Not sure which Party wants to take credit for making housing even more expensive.
Ridiculous..... It's apparent this is another attempt at blowing smoke up our collective butts!
Every house but mine, apparently. I lost another $2,300 in value in October.Â
 @Bianca Zillow says the value of my home increase over $9,000 in the last thirty days. Not that it makes any difference since it is paid for and not for sale.
"Steady price increases are fueling the housing recovery. They encourage more homeowners to sell their homes. And they entice would-be buyers to purchase homes before prices rise further."
Couldn't we just as easily say that steady price increases discourage would-be buyers from buying, and that they entice homeowners to put off selling until prices rise further?
Thanks Obummer.