Home Prices Climb Across Country
November 6, 2012
The U.S. housing market continued to gain steam in August, with new data showing that home price increases accelerated over the month while also spreading to more cities across the country, says the Wall Street Journal.
- The housing recovery is a result of rising demand combined with declining inventory and low interest rates.
- The S&P's/Case-Shiller 20-city home-price index rose 2 percent in August compared to a year ago.
- This represents 1.2 percent annual increase in July and the fastest pace in two years.
- Phoenix, for example, has seen an 18.8 percent increase in prices from last year.
This growth is especially encouraging considering that price gains normally peak during the summer season and then slow down. The declining numbers of foreclosures and "distressed" houses -- which previously brought down the value of the entire housing market -- are signs of a strong recovery.
The price gains in the housing market could stagnate if inventory continues to decline and household incomes don't grow.
Source: Conor Dougherty, "Home Prices Climb Across Country," Wall Street Journal, October 30, 2012.
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