Prices of U.S. single-family homes rose for the second consecutive month in June, adding to evidence that the three-year housing slump is easing, Standard & Poor’s reported on Tuesday.
The S&P/Case-Shiller composite indexes of 10 and 20 metropolitan areas both rose 1.4 percent in June from May, almost three times the 0.5 percent increases of the month before. May’s increases were the first in nearly three years.
S&P also said its U.S. National Home Price Index recorded a 14.9 percent decline for the second quarter, compared with a 19.1 percent year-over-year drop in the first quarter.
Compared with the first quarter, though, prices rose by 2.9 percent, marking the first such increase in three years.
Don’t get too excited, San Diego’s June number was 146.09, a measly 0.67% increase from May’s 145.12 – we’re all the way back to March’s number!
Take it all with a grain of salt, with emphasis on the local numbers. Like these from Altos Research:
Sellers gravitate towards the good news only – expect that their confidence will be artificially inflated, like a lot of other things.
Places like Oceanside may be hot with FHA/VA buyers, causing some wild blog stories, but looking at these graphs, there doesn’t appear to be much pricing pressure in Carlsbad (or other similar areas). The shorter-term will have some spikes, but the 90-day is the trend.
We might see a flurry or two, here and there, but it would take a consistent string of months’ or years’ worth of improvement before many will be impressed.
People with bigger down payments are choosier, which keeps a lid on pricing.