Case-Shiller Home Price Indexes Up in May
On a monthly basis, 19 of the 20 metro areas and both composite indexes increased in May from April, by 1.2% for the Composite-10 index and 1.3% for the Composite-20 index. Commentary from Standard and Poors follows:
“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,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “Since reaching its recent trough in April 2009, the housing market has really only stabilized at this lower level. The two Composites have improved between 5 and 6% since then, but this is no better than the improvement they had registered as of October 2009. The last seven months have basically been flat.”
“The May 2010 data for 15 of the 20 MSAs and the two Composites show an improvement in annual returns compared to April’s report. With the month-over-month data, while 19 of the 20 MSAs and the two Composites were positive, we are in a strong seasonal period for home prices, so that was largely expected. In addition, there may still be some residual impact from the homebuyers’ tax credit, since they affect any purchase that closes through June 30th 2010. We need to watch where the housing markets will go after these temporary stimuli go away. June’s existing and new home sales and housing starts data do not show much real improvement in those statistics either. It still looks possible that the housing market might bounce along the bottom for the foreseeable future, before showing any real improvement that will filter through to the rest of the economy.”
12 Comments:
It is good to see that home prices have stabilized, but my concern about the data is that the number is skewed by the fact that the government paid about $4000/house sold in May. This inflates the average selling price of a home (when a third party pays part of the price, the overall price goes up - see posts by Mark Perry on tuition and healthcare costs).
On the better news side was the census data on vacant home. This number dropped to 2.5% last quarter. While still historically high, it is now heading in the right direction. It is a necessary step for clearing out the excess home inventory.
Campbell Surveys put out a press release this morning: Home Prices Tumble in Most Categories During June (no link)
A drop in homebuyer activity helped trigger a noticeable decline in home prices between May and June, according to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions.
...
Average prices tumbled by 6.8% for move-in ready foreclosed properties, 6.3% for short sales, and 4.6% for non-distressed properties.
Maybe we should kill the ethanol program, to jumpstart our economy.
Imagine President Obama said he had an energy plan. He will convert urban waste streams into a liquid fuel. This effort will consume a lot of energy, maybe as much as it produces. It would raise prices of some commodities. It will flow big money into urban areas--and you will see urban residents buying new homes and fancy cars. Taxpayers will be forced to use this liquid urban fuel in their cars, they have no choice. It mandated at 10 percent, maybe up to 15 percent, of all gasoline. The total federal subsidy (yes, subsidy and mandate) will be about $1.70 a gallon.
I wonder how conservatives would react to such a program.
Of course, I have just described our corn-ethanol program.
I am an urban resident. I can't believe how stupid we urban residents are. We need to look to corn farmers to figure out how to really get the lard, and fleece taxpayers and consumers.
Benji: Yet another broken record post. I see you still have not responded to the actual facts I posted about our federal budget and deficit. If you completely eliminated the budget for agriculture and defense, we would still have a deficit. The reason: social spending on your fellow parasitic Obama voters. So, let's stop pretending that you care about fiscal discipline.
Benji,
"I wonder how conservatives would react to such a program."
Well, your boyfriend Barack was one of the biggest ethanol whores in the Senate. Somehow that inconvenient fact never pierces your one-note rants.
Bill-I did respond on your q about the federal budget.
MOre than 70 percent of federal income taxes are eaten up by DoD, VA, USDA, Commerce, Interior, the lamentable "homeland security" and debt. You gotta so some major whack jobs on those prgrams.
I would eliminate Dep't of Education and HUD. Whack DoD in half, and wipe out USDA.
And kill the ethanol program immediately.
The oversized entitlement programs are financed by payroll taxes. I would cut those too, 15 percent across the board, and raise retirement age to 68 for SS, and also for all federal employees, including those in DoD.
Okay, you can call me liberal etc, but this is what I really beleive in.
The R-Party will never do it.
"The R-Party will never do it."
Are you aware the R party isn't in charge? Democrats are running everything, how are they doing, Benji?
Meanwhile, your boyfriend Barack is spearheading a RURAL broadband initiative as part of his idiotic economic planning scheme.
Paul-
Are you a Republican operative? I can't understand anyone defending the R-Party. Even Tea Partiers identify the R-Party as a ring of grifters, a confederacy of feckless poltroons and imbeciles.
Obama's rural initiatives, like his Afghan war, are really, really, really bad ideas.
"MOre than 70 percent of federal income taxes are eaten up by DoD, VA, USDA, Commerce, Interior, the lamentable "homeland security" and debt"...
Well pseudo benny how often will you repeat your lie before you think someone will buy into it?
"The 10-City Case-Shiller Home Price Composite Index increased in May by 5.4% and the 20-City Composite Index increased by 4.6% compared to May 2009..."...
Some are saying the data isn't quite on the mark: New Home Sales and Bear Market Math
" I can't understand anyone defending the R-Party. Even Tea Partiers identify the R-Party as a ring of grifters, a confederacy of feckless poltroons and imbeciles."
Your stupid name calling is all you have, Benji. I'm a Tea Partier and I can tell you the frustration we hold for the GOP is nothing compared to the contempt we have for your boyfriend and the morons who voted for him.
"I'm a Tea Partier and I can tell you the frustration we hold for the GOP is nothing compared to the contempt we have for your boyfriend and the morons who voted for him"...:-)
Amen!
More mixed signals regarding the housing recovery...
From the always questionable Reuters: Foreclosures up in 75 percent of top U.S. metro areas
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