US home prices surpass pre-recession peak amid healthy sales

  • US home prices surpass pre-recession peak amid healthy sales

US home prices surpass pre-recession peak amid healthy sales

The milestone comes after more than four years of steady gains.

The new peak in the National Index "will be seen as marking a shift from the housing recovery to the hoped-for start of a new advance", said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices.

The average national home price is now 0.1% above the June 2006 price, although the index does not account for inflation. In September, Seattle led with an 11.0% year-over-year price gain, while Portland followed closely behind with 10.9%.

US home prices have fully recovered from their steep plunge during the housing bust and Great Recession, according to a private measure.

It appears that the transitional aspect of September went beyond the change from summer to autumn-in the housing world, September also saw a transition from high home prices to even higher home prices.

Seattle, Portland and Denver reported the highest yearly gains for the eighth straight month.

A national housing index released Tuesday provides more evidence of steady home price growth in South Florida.

Considering how long we've been talking about how out of control Seattle housing market growth has been over the last couple years, it's a bit awesome we're only just getting to the point where it's the hottest housing market in the country.

"Inadequate supply of homes available to buy - especially at the entry-level end of the market - remains a huge problem", said Svenja Gudell, chief economist for real estate data provider Zillow.

The FHA First-Time Buyer NMRI came in at 24.8% in July, up 1.0 percentage point from a year earlier, setting a series high. Southern cities also are posting stronger gains than those in the North, Case-Shiller said. After Trump's election, the rate on a 30-year mortgage jumped from 3.3% to over 4%. They have since recovered that loss and are now 0.1 percent above the previous peak.

On a seasonally adjusted monthly basis, both the 10- and 20-City composites increased by 0.1% in September, while the National Index increased 0.4%.

Although prices have bounced back, many economists tempered their enthusiasm about what it means for the housing market's overall health. And developers broke ground on the most new homes in nine years last month.

At the same time, the index for San Francisco area condo values rebounded 1.1 percent from August to September, it's first month-over-month gain in four months, and is now running 3.2 percent higher versus the same time a year ago and 20.9 percent higher than its previous cycle peak in October 2005, down from 22.3 percent higher in May.