U.S. Home Prices Up 5% Year-Over-Year

March 4, 2010 by · Leave a Comment
Filed under: Real Estate News 

With jobless claims going down, consumer spending up and home prices rising, this may be a sign of an actual recovery.  To be sure, we still have need to see large gains in the job market to really believe we will have a sustained and durable recovery.

Let us not forget if we look at the U6 unemployment number, we have over 15% unemployment and that represents discouraged workers that have given up looking for work.  Once jobs start being created rapidly, those workers are going to re-enter the labor market and that will but a strain on the recovery.  We are walking a fine line right now and hopefully we can get through this without creating another bubble.

DS News – New data released by Clear Capital Thursday shows that home prices nationally are up 5.0 percent compared to February 2009.  The quarter-over-quarter price change for the numbers through last month was flat at 0.0 percent, indicating a softening during the winter months.

But Clear Capital noted that the year-over-year price variations have been in positive territory for two months straight, and the company said it expects another big price boost to come when home sales pick up before the contract deadline for the homebuyer tax credit.

“If the increase in demand that preceded the end of the last tax credit is any indication, home prices may dip only slightly into negative territory before getting an added boost before the April tax credit deadline,” said Dr. Alex Villacorta, senior statistician for Clear Capital.

All four U.S. regions posted very consistent quarterly price changes in February, according to Clear Capital’s analysis, with only the Northeast showing a decline of 1.4 percent.

On a year-over-year basis, just the West had a drop, and it was a mere 0.5 percent. Prices in the Midwest skyrocketed 13.8 percent compared to February 2009.

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