More good news in the overall schematics of economic recovery: home prices have risen the most we’ve seen since seven years ago, with many cities seeing home prices jump in the double digits, with an overall increase of 12.1 percent from a year ago. This, compounded with the Standard & Poor’s/ Case-Shiller 20-city home price index released Tuesday showed a rise of 2.5 percent in April from March, as Yahoo News reported, show the biggest month to month gain than since 2000. More people are hiring, more people are working, more people want a house.
It’s good news, but it isn’t sustainable. Don’t bank on every month being so drastic. “The national housing recovery is strong and sustainable, but pockets of volatility will emerge,” said Stan Humphries, chief economist at real estate data provider Zillow. “Buyers expecting home values to continue rising at this pace indefinitely may be in for a shock.”
And yet some are banking on it, as construction is up and builders are building. That means more jobs in construction and in everything to do with home-building and home selling, especially in areas like San Francisco, Las Vegas, Phoenix, and Atlanta, where this year has seen more than a 20 percent increase in jobs.
This jump relates to an increased overall economy with more people able to purchase a home, and not enough being available. Also, a recent study by the Feds suggests some banks are lowering their credit standards, widening the market of those who are literally able to buy a home. This in turn should create more jobs, and perpetuate the economy in its upward spiral to pre-recession prosperity.Home Prices Rose Most Drastically in 7 Years this April by Andrew Ostler