US home prices rise in May by most in 7 years

[Omaha Steve]

Source: AP-Excite

By CHRISTOPHER S. RUGABER

WASHINGTON (AP) - U.S. home prices jumped 12.2 percent in May from a year ago, the most in seven years. The increase suggests the housing recovery is strengthening.

Real estate data provider CoreLogic said Tuesday that home prices rose from a year ago in 48 states. They fell only in Delaware and Alabama. And all but three of the 100 largest cities reported price gains.

Prices rose 26 percent in Nevada to lead all states. It was followed by California (20.2 percent), Arizona (16.9 percent), Hawaii (16.1 percent) and Oregon (15.5 percent).

CoreLogic also says prices rose 2.6 percent in May from April, the fifteenth straight month-over-month increase.

FULL story at link.


Read more: http://apnews.excite.com/article/20130702/DA79D5SG0.html

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In this Tuesday, May 28, 2013 photo, a single family home is shown for sale in Surfside, Fla. U.S. home prices jumped 12.2 percent in May from a year ago, the most in seven years. The increase suggests the housing recovery is strengthening. Real estate data provider CoreLogic said Tuesday, July 2, 2013, that home prices rose from a year ago in 48 states. They fell only in Delaware and Alabama. And all but three of the 100 largest cities reported price gains. (AP Photo/Wilfredo Lee)

[AtheistCrusader]

1. Well, mine ONLY fell by $6k this time, so that's some serious improvement.

Neighbors and the banks really fucked me over on this one.

At least I still like and can still afford my home. Going to be underwater for the next five years at least.

[RufusTFirefly]

2. Oh goody. Here comes another bubble. n/t

[Socal31]

3. It is nothing like the 00's bubble.

This one is due to lack of supply, mostly artificial.

[PSPS]

4. That's only part of it

Inventory was short in the last bubble too, due to shady NINJA no-doc loans fueling purchases. Since wages haven't increased at all, there is no fundamental justification for this rise in prices. Instead, it's the result of an influx of all-cash buyers (the top 0.1% have made out like bandits thanks to the trillions lavished on them by this administration) plus, to a lesser extent, the return of too-easy-to-get loans (i.e., no money down, high debt-to-income ratio, etc.)

Well, perhaps you did say the same thing, only more succinctly. Do we still have people living for free in their houses years after their NOD?

[Socal31]

6. There are no too-easy-to-get loans.

The government programs that allow low down payments (VA, FHA, USDA) have tightened standards and made credit more expensive. Conventional low down payment loans require private mortgage insurance, and are not easy to be approved for.

What we have are banks holding on to foreclosed properties instead of flooding the market causing further devaluation. I am in the industry and deal mostly with new construction, and people are buying it up as quickly as it can be built. There are far too many empty homes for that to be happening....

[Javaman]

9. Different kind of bubble...

I live in a blue collar neighborhood of North Austin.

the worth of our house has remained flat even during the last bubble. Not what you call a "high dollar neighborhood", yet this time around, our property value jumped 20k in less then a year.

that scares the crap out of me.

Luckily, our house is paid off, but anyone trying to buy in one of the last few affordable areas in Austin are suddenly having a really hard time.

[SunSeeker]

5. Prices still are not back to where they were just 4 years ago, let alone 2005.

Here in my little corner of Southern California, the houses are still $30K-75K less than what they were in 2009. And they are still at least $150K less than what they were in 2005.

[Socal31]

7. Depends on location.

In "entry-level" properties in Orange County (condos and 2 bedroom houses, 180-300k), I have seen a 50% profit since 2011 for one of my friends. (bought at $220k in 2011, sold @ $310k about a month ago)

It is a very strange, artificial, and unsustainable market, marked by isolated pockets of extreme over-bidding due to lack of supply and cash investors being in the market as well.

[tofuandbeer]

8. In Southern California, it was a mega bubble...

if it goes back to that, we're in trouble again.

[uh clem]

10. I saw an article..

...that said banks were buying houses and renting them.