Home prices are nipping at the heels of all-time highs set in 2006, according to the latest data from S&P Dow Jones Indices.
The S&P CoreLogic Case-Shiller US National Home Price NSA Index saw a 5.3% gain in August, according to S&P. The index is currently sitting at 184.42 – just 0.1% below its record 2006 high of 184.62.
Case-Shiller’s 10-city index saw a 4.3% increase year over year, while its 20-city index saw a 5.1% increase.
“Supported by continued moderate economic growth, home prices extended recent gains,” said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “All 20 cities saw prices higher than a year earlier with 10 enjoying larger annual gains than last month. The seasonally adjusted month-over-month data showed that home prices in 14 cities were higher in August than in July.
“With the national home price index almost surpassing the peak set 10 years ago, one question is how the housing recovery compares with the stock market recovery,” Blitzer added. “Since the last recession ended in PRESS RELEASE c G R June 2009, the stock market as measured by the S&P 500 rose 136% to the end of August while home prices are up 23%. However, home prices did not reach bottom until February 2012, almost three years later. Using the 2012 date as the starting point, home prices are up 38% compared to 59% for stocks. While the stock market recovery has been greater than the rebound in home prices, the value of Americans’ homes at about $22.3 trillion is slightly larger than the value of stocks and mutual funds at $21.2 trillion.”
Source: Ryan Smith – Mortgage Professional America, 10/26/2016