Latest Adjusted Prices Show Slight Increase
S&P/Case-Shiller Report Reports 0.2% Rise
According to the S&P/Case-Shiller report released last week, the composite index for 20 metropolitan areas gained 0.2 percent this February when seasonally adjusted — meeting forecasts made by economists. The rise is the first increase since April of last year. S&P’s index committee chairman noted that the news was a mix of good and bad news — prices in some areas continue to decline, and without the seasonal adjustment, the 20-city index was down 0.8 percent to reach 134.20, the lowest it’s been since 2002. (via Reuters)
Barclays Capital sees first signs of price increases
Analysts from Barclays Capital consider the 22 pecent order growth seen by homebuilders in the first quarter of 2012 as an early sign of the market beginning to see price increases return. The managing director of Barclays’ homebuilding division said that Phoenix, Denver, Orange County, CA, among others are seeing pricing comebacks. Three builders concurred with that perspective — Lennar, Meritage Homes and Ryland Group have reported the strongest order growth across both location and buyer type. Other homebuilders, D.R. Horton, PulteGroup, and M/I Homes also showed order growth, but without the same strong feeling for the trend to continue.
It’s possible that the last 12 to 24 months of increased investor activity buying existing homes has raised consumer demand for new homes. If so, that could mean good news for the homebuilding sector and the housing market. (via Housing Wire)