home prices increase from 1Q to 2Q and consumer con. soars...dow 15,000 is coming

Discussion in 'Wall St. News' started by S2007S, Aug 25, 2009.

  1. S2007S


    The news just keeps getting better and better, the fed better take notice and start raising rates immediately....

    Index shows home prices increase from 1Q to 2Q
    S&P index shows home prices rose 3 percent in 2nd qtr, the first quarterly gain since 2006

    * By J.W. Elphinstone, AP Real Estate Writer
    * On Tuesday August 25, 2009, 9:24 am EDT

    NEW YORK (AP) -- Home prices posted their first quarterly increase in three years, signaling the housing market has turned a corner.

    The Standard & Poor's/Case-Shiller's U.S. National Home Price Index released Tuesday rose nearly 3 percent from the first quarter to 133, though that reading is still down almost 15 percent from the second quarter last year.

    Home prices are at levels not seen since early 2003. Prices have fallen 30 percent from the peak in the second quarter of 2006.

    The monthly index of 20 major cities increased 1.4 percent from May to June to 142, the second straight month the index registered a gain. All but two cities, Las Vegas and Detroit, saw home prices rise, and Dallas and Denver clocked their fourth-straight monthly increase.

    Prices, however, have a long way to go to recover completely. Every metro showed annual declines, with fifteen reporting double-digit drops.

    The Case-Shiller index is a composite of home price indexes for the nine U.S. census divisions. The 20-city index measures home price increases and decreases relative to prices in January 2000. The base reading is 100; so a reading of 150 would mean that home prices increased 50 percent since the beginning of the index.
  2. VERY bullish indeed. Home price stabilization is key to get the consumer spending again.

    The question is, how can we best play the resurgence of home prices?
  3. AK100


    Err, how about buying property?

    Just a thought :)
  4. After you, sir.
  5. That is obvious. I'm looking for something much more liquid than real estate...
  6. Kool aid!

    Let's hope you don't fall into buying stocks, much less homes yet.

    Banks are intentionally delaying foreclosures as not to overflood the market with homes.
  7. Agreed! I live in Wyoming one of the states least hit and one of the states with the healthiest economies, and here lenders aren't foreclosing on homes that "look" to have families living in them because they are so busy with the other ones. In the larger cities I am sure they are much more lenient than that, be careful thinking that housing has turned because there are massive gluts of pre-foreclosure homes.
  8. For argument sake, let's assume housing HAS turned the corner (whether you personally believe it has or not is irrelevant). Where would you be putting your money to capitalize? (except real estate due to the illiquidity).
  9. ipatent


    Housing is going to have real challenges as the Alt-A's reset over the next two years, and could tank big time if Bernanke loses the long bond and mortgage rates go sky high.

    I would think long and hard before buying RE at this point.
  10. taipan77


    What's funny is that I live in San Diego and there's tons of houses for sale. What I find comical is that these real estate agents seem to think that houses built in the 70's that need about 30k in work are still worth almost 400k. That is just comical to me since all the jobs are going away and people have no money to buy them. The only reason there seems like demand is that banks wait till they get several bids to create a bidding war. If we weren't giving them free money they would be liquidating these homes. Instead of being the stuckup where your price is not good enough. I say let the market reign and let the price go where it needs to go so we can find a bottom some time this century.
    #10     Aug 29, 2009