27th
Home prices continued to rise
The prices of U.S. homes in 20 metropolitan cities continued to rise
for the fourth-straight month in August, according to the Case-Shiller
home price index. The home price stabilization added to signs of
housing market improvement and economic stability in the United
States.
In August the price index climbed by a seasonally adjusted 1% compared
with July. Prices rose in 17 of 20 cities.
In the past year, the composite index is down 11.3% in the 20 cities.
Prices are down 29.3% from the peak. Prices are where they were in the
fall of 2003.
The Case-Shiller index lags behind the National Association of
Realtors� report on existing home sales, which have been issued for
September. That number also showed improvement. Low prices and
mortgage rates combined with the first-time buyers� tax credit have
spurred home sales. Congress is considering extending the tax credit
that saves first-time buyers 10 percent of the sales price, up to
$8,000.
Some investors have become concerned that such signs of improvement
could prompt central banks to withdraw stimulus measures sooner than
expected. Another factor likely to obstruct the market in the coming
months is an increase in interest rates, as the Federal Reserve ceases
its buying mortgage-backed securities.
http://myvoiceoflife.blogspot.com/2009/10/home-prices-continued-to-rise.html
