Economy
US Home Price Index up 11.2% Y/Y
Written by Sandy Williams
November 26, 2013
The S&P/Case Shiller U.S. National Home Price Index rose 11.2 percent year-over-year for its highest level since 2006, according to data compiled through September 2013. On a quarter-over-quarter basis, the third quarter index rose 3.2 percent.
The index is based on the annual returns of 10-City and 20-City Composites. Twelve of the 20 cities posted double-digit annual returns in September with home prices increasing the most in Western cities. Momentum may be slowing, however, as 19 cities had lower monthly returns in September than in August.
“The strong price gains in the West are sparking questions and concerns about the possibility of another bubble,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “However the talk is focused on fear of a bubble, not a rush to join the party and buy. Moreover, other data suggest a market beginning to shift to slower growth rather than one about to accelerate. Existing home sales weakened in the most recent report, home construction remains far below the boom levels of six or seven years ago and interest rates are expected to be higher a year from now.
“Housing continues to emerge from the financial crisis: the proportion of homes in foreclosure is declining and consumers’ balance sheets are strengthening. The longer run question is whether household formation continues to recover and if home ownership will return to the peak levels seen in 2004.”
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
Beige Book finds growing economic, policy uncertainty
All districts reported "hesitancy and a cautious approach to business and household decisions,” according to the Beige Book.
ISM: Manufacturing continues to contract in May
May marks the third consecutive month US manufacturing activity declined, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.
Chicago PMI decreases 4.1 points in May
The Chicago Business Barometer reports that decreases in new orders, order backlogs, and softer production pulled the index down by 4.1-points to 40.5, in May.
Architecture firms struggle through April
For the third month in a row, architecture firms reported a reduction in billings through April, according to the latest Architecture Billings Index release.