January 31st, 2013
The most recent industry data released by the S&P/Case-Shiller Home Price Indices reveals that U.S. home prices experienced considerable gains in several markets through November 2012.
According to the report, home prices rose 4.5 percent for the 10-City Composite and 5.5 percent for the 20-City Composite in the 12 months ending in November 2012. Prices rose in 19 of the 20 cities included in the index, with the exception of New York where prices declined. Phoenix, Arizona, experienced the fastest price gains – which rose 22.8 percent – during the 12-month period, marking its seventh consecutive month of annual returns.
“Housing is clearly recovering,” said David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “Prices are rising as are both new- and existing-home sales. Existing-home sales in November were 5 million, highest since November 2009. New-home sales at 398,000 were the highest since June 2010. These figures confirm that housing is contributing to economic growth.”
The Southwest and Southeast regions saw significant gains, and the Sun Belt region has ascended to the fastest-growth area in terms of home prices in the country. Strengthening home prices, coupled with affordable mortgage rates, are expected to result in a booming year for mortgage service companies, which are projected to take in more new home and refinance applications.