According to a report that came out at the end of May, home prices rose in March, especially in the western US, for an average of 4.1% year-over gains. 20 cities in particular experienced growth. This data comes from a survey of the S&P/Case-Shiller Home Price Index. San Francisco and Denver reporter 10% and higher year over gains from 2014.
A report by the United States Census Bureau that came out around the same time said that single-family home sales rose 6.8% in April.
Home prices have gained for 35 month in a row. Reports such as these are beginning to remind people of the housing bubble from 2007.Home rates are currently rising faster than wages and per capita income. Reuters reports isn’t a bad thing, however, and probably a rebound rather than a bubble. One way to tell is that consumer debt levels are healthy, unlike before the Great Recession.
“The annual rate of increase halved in the last year,” USA Today wrote, paraphrasing David Blitzer, Index Committee Managing Director and Chair S&P Dow Jones Indices. He argues that this is a sign that future moderation is expected.
St. George area residents are also experiencing more home sales and construction. While there’s no way to know for sure whether the current housing rates are due to a rebound in the housing market or a housing bubble, taking care of personal finances is the best way to combat market uncertainty.
Overall, economists see gaining home values as a positive sign that the economy continues to recover.