I’m still cogitating on election outcomes and will have more to say soon, but for now, just a quick look at the slowly but I think surely recovering housing sector.
The two figures below convey a few important points. First, home prices are rising steadily, about 5% over the past year, according to CoreLogic. Second, both non-distressed and distressed sales have been rising (distressed sales are short sales and foreclosed properties; not shown in figure, but their yr/yr prices have been up each month since March, up 4.6%, Sept12/Sept11). The distressed sales are still about 20% of the total so their positive movements are a big deal here.
Third, these prices are coming off a very low base. The bar chart shows home price changes in various metro areas both from one year ago and from their peak. In Phoenix, for example, single family home prices are up more than a fifth compared to a year ago, but remain about 43% below their 2006 peak.
So, yes, like much else in our economy, things are improving, but they’ve got a ways to go. Of course, one essential caveat to that conclusion in the housing space: the peak was inflated by a massive and terribly destructive bubble, so getting back there is not, by any means, a goal.
Source: CoreLogic, economy.com