Tags: US | Home | Prices

Home Prices Rise Again in October

Tuesday, 29 Dec 2009 11:46 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

Home prices rose for the fifth month in a row in October, but the recovery continues to be uneven with only 11 of the 20 metro areas tracked showing gains.

The Standard & Poor's/Case-Shiller home price index released Tuesday edged up 0.4 percent to a seasonally adjusted reading of 145.36 in October from September. Without adjusting for seasonal factors the index was flat from September.

The index was off 7.3 percent from October last year, nearly matching expectations of economists surveyed by Thomson Reuters. Many economists, however, are predicting a double dip in prices this winter as foreclosures increase and government support wanes.

Special: Get Sarah Palin’s New Book – Incredible FREE Offer -- Click Here Now.

"I'd be very surprised if we don't go below the lows we hit this year," Dean Baker, co-director of the Center for Economic and Policy Research, a left-leaning Washington think tank. "We still have a very glutted housing market."

The index is now up 3.4 percent from its bottom in May, but still almost 30 percent below its peak in April 2006.

There are also wide variations from city to city. Prices have climbed for at least six months in a row in Denver, Washington, Minneapolis and San Francisco. But in Chicago and Tampa, Fla., prices are down by more than a percent from September. And there's no sign of a bottom in Las Vegas, where prices have tumbled by more than 56 percent from their peak in April 2006.

Home prices play a key role in the economy. Homeowners feel wealthier when property values rise and are more likely to spend money. Rising prices also help millions of homeowners who owe more to the banks than their houses are worth.

The positive trend in home prices and a better employment outlook helped raise the Consumer Confidence Index to 52.9 in December, up from a revised 50.6 the month before, the Conference Board reported Tuesday. While far below a 90 reading that would signify a solid economy, consumers' outlook on jobs over the next six months reached its highest level in two years.

The federal government has stepped in with far reaching programs to create jobs and make homeownership more affordable.

Home price gains since the summer reflect the rush of homebuyers trying to close their deals before the original expiration date of a federal tax credit. The Nov. 30 deadline was extended last month to April 30.

Besides a credit of up to $8,000 for first-time buyers, Congress expanded the program to include homeowners who have lived in their current properties for at least five years. They can now claim a tax credit of up to $6,500 if they relocate.

The Federal Reserve is also buying up $1.25 trillion in mortgage-backed securities to help keep interest rates at historical lows.

——

AP Real Estate Writer Alan Zibel in Washington contributed to this report.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Obamacare Architect Gruber Loses Second Consulting Job

Friday, 21 Nov 2014 22:39 PM

Obamacare architect Jonathan Gruber, who publicly boasted about the healthcare law’s "lack of transparency" and credited . . .

Obama's Immigration Speech Gets Most Viewers on Univision

Friday, 21 Nov 2014 20:00 PM

As the lead-in to the Latin Grammys, President Barack Obama's speech announcing his sweeping immigration reforms reached . . .

Jimmy Carter Lashes Back at 'Warmonger' McCain

Friday, 21 Nov 2014 19:35 PM

Former president Jimmy Carter considers it a compliment that Arizona Republican Sen. John McCain thinks Barack Obama is  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved