The Standard & Poor’s Case-Shiller home price index for October measured a 4.3 percent annual increase within 20 cities it monitors, flagging a housing recovery that’s been gaining steam.
The Los Angeles market, which offers an indication of how the Inland area has fared, out-performed the national average: The S&P report noted a 6.2 percent gain in the Los Angeles region from October 2011.
Christopher Thornberg, founding partner of Los Angeles-based Beacon Economics, said this burst of activity is occurring across Inland Southern California.
Beacon Economics, in an economic forecast released this month, noted that October home prices in Inland Southern California were up more than 23 percent from the earlier trough, and the home price growth was happening at a faster clip than its Southern California neighbors.
The two-county Inland region of Riverside and San Bernardino counties enjoyed eight straight quarters of price appreciation through October.
Foreclosure activity kept a lid on home price increases in the hard-hit Inland area region of Riverside and San Bernardino counties in the past. The Inland region still has a long way to go before it returns to pre-recession levels, but indicators show positive improvement into 2013 for Riverside and San Bernardino counties.
“As foreclosures go away, you’ll register solid increases that are greater than the L.A. area,” Thornberg said.
“It is clear the housing recovery is gathering strength,” David Blitzer, S&P index committee chairman, said in a statement. “Higher year-over-year price gains, plus strong performances in the southwest and California regions that suffered during the housing bust confirm that housing is now contributing to the economy.”
The S&P report coincided with the December 2012 release of Zillow’s home price expectation survey on Wednesday, Dec. 27, predicting the future path of the Case-Shiller national home price index.
Taken by a nationwide panel of 105 economists, real estate experts and investment and market strategists, the survey predicts a 3.1 percent rise in home prices in 2013, after finishing 2012 with a 4.6 percent gain.
Stan Humphries, chief economist for the real estate information service Zillow, said a 2.3 percent home price gain in 2012 was predicted in September. Around that time, he said an organic recovery in the housing market took hold.
“Record levels of affordability and an improving overall economic picture have really helped buoy the market and have us well positioned for continued growth, albeit slightly slower, in 2013 and beyond,’’ he said.
For the original post visit: http://www.pe.com/business/business-headlines/20121226-real-estate-going-up-home-prices.ece
No comments:
Post a Comment