Yesterday, the Standard & Poor’s Case-Shiller home price index reported the biggest gains in seven years. Consumer confidence also reached a new five-year high this month, according to a report by Conference Board. The report highlighted big improvements in how Americans view the current economy and future economic conditions.
“Five years after the start of the financial crisis in earnest, and four years and a week’s time from the beginning of the economic recovery, we’re finally starting to get more of a pickup,” said Chief Economist at RDQ Economics, John Ryding.
The Case-Shiller home index, as reported yesterday, revealed that the 20-city composite index rose 10.9% last year, which is the biggest increase since April 2006. The 10-city composite index rose 10.2% in the last year as well. Nationally, the composite rose 1.2% the first quarter of 2013 and the 10- and 20- city composites both posted 1.4% increases this first quarter as well.
“Home prices continued to climb,” said David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “Home prices in all 20 cities posted annual gains for the third month in a row. Twelve of the 20 saw prices rise at double-digit annual growth. The National Index and the 10- and 20-City Composites posted their highest annual returns since 2006 . . . Other housing market data reported in recent weeks confirm these strong trends: housing starts and permits, sales of new home and existing homes continue to trend higher.
Economists expect prices to continue rising, particularly as the economy improves, job employment increases and more and more families are interested buying.
Source: S&P Dow Jones Indices, New York Times