Property prices in the US more than expected

  • 12 years ago
  • Uncategorized

Prices of homes in the US climbed
more in the year to July 2012 than forecast, providing more evidence that the
country’s housing market is starting to recover.

The S&P/Case-Shiller index of
property values in 20 major cities increased by 1.2 per cent between July 2011
and July 2012, the biggest 12 month rise since August 2010.  The median forecast of 23 economists
surveyed by news service Bloomberg was for a 1.1 per cent gain. Keep reading to
find out more about the US recovering property market.

US property prices rise by 1.2 per cent in year to July 2012

The rise in property prices has
been attributed to the fact that mortgage rates are now at their lowest levels
on record.  Buyers are being
attracted by low rates which are helping absorb the supply of distressed
properties that had depressed values.

The average rate on a 30 year
fixed mortgage in the US fell to 3.49 per cent in the week ended 20th
September according to figures from Freddie Mac.

Millan Mulraine, senior U.S.
strategist for TD Securities in New York, said: “We’re finally seeing a more
sustained and broad-based improvement in home prices.  The housing sector has made an important turn here, and that
is being sustained.”

The Case-Shiller index is based
on a three-month average, which means the July data were influenced by
transactions in May and June.  The
20-city index accelerated after showing a 0.6 per cent rise in values in the
year ended June 2012.

“All in all, we are more
optimistic about housing,” David Blitzer, chairman of the S&P index
committee, said in a statement. “Stronger housing numbers are a positive factor
for other measures including consumer confidence.”

Sixteen of the 20 cities featured
in the index showed a year on year gain, led by a 17 per cent increase in

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