“Home prices continue to strengthen,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “Two cities set new highs, surpassing their pre-crisis levels and five cities – Atlanta, Chicago, San Diego, San Francisco and Seattle – posted monthly gains of over three percent, also a first time event.”
This is pretty big news– to gain on a monthly basis over 3 percentage points. It appears to be approaching frenzy in a few states this summer. Blitzer did not mention the two cities which set new pre-crisis highs.
The gain for the 10-city and 20-city composite was also significant at 2.5% and 2.4%.
Though the 20-City and 10-City composites appear to be at spring 2004 levels, Portland is at July 2005 levels with a figure of 151.91. It is also sitting nicely in the middle of the pack with a yearly gain of 12.5%.
People are wondering whether or not another bubble is being witnessed as well. David Blitzer mentioned a few months ago that we shouldn’t be concerned about a bubble until we see gains in the 20-30% range. Well, we have 4 in that category and 2 near 20%. There is no true way to predict the future. Many still unpublicized are cautious. In fact, I have seen a number of factors in the rental markets which reflect a move away from home buying to stay mobile and possibly steer clear of home ownership as a solid future investment.
It is hard to discern either way…this is only speculation as prices continue to increase monthly.
The full report here July 30, 2013 CS
Broker / Market Analyst