June Figures Hint of Home Price Rebound

Are U.S. home prices beginning to recover? New data from the  S&P CoreLogic Case-Shiller national home price index hints that things in the housing market may be turning, after prices on a monthly basis rose in June. Prices were unchanged year-over-year, suggesting that declines in the market had reached a bottom.

The index increased by 0.7% over prices in May, which also were up, by 0.8%. Additional evidence of an improving price environment came in an index that track the nation’s 20 biggest metro areas, which shoed a 0.9% gain for June.

Nicole Bachaud, senior economist for Zillow.com, said high mortgage rates were still no match for very low inventory, making competition for what is on the market higher than it would be otherwise given the affordability constraints, and thus prices continue to inch up. With new construction activity wavering and existing homeowners still feeling strongly about keeping their low mortgage rates, she said, inventory will likely continue to play a role in keeping pressure on home prices throughout this year.