This Great Graphic was re-posted from the Wall Street Journal on Barry Ritholtz' s blog The Big Picture. The left side shows the magnitude of the decline, while the right side shows the recovery. It is an interesting chart, though the dates seem peculiar.
According to the charts, house prices in Dallas and Denver are at new highs. On the other hand, prices in New York City have barely recovered. San Francisco experienced a 30% decline in house prices and then a 30% recovery. This leave it about 10% below the peak.
The S&P/Case-Shiller Index of 20 large cities shows house prices have risen by almost 11% in March from a year ago. This is the largest rise since the market peak in 2006. The recovery in house prices is a vital aspect the of the economic recovery for Fed Chairman Bernanke. The backing up of Treasury yields is also seeing a rise in mortgage interest rates.
If there is widespread expectation that the end of the extraordinary low interest rate era is at hand (and one high profile fixed income manage already declared as much), then there could be an initial flurry of activity as households try to lock in the historic rates. A few more months of activity, in a less-low interest rate environment, is needed (for Fed officials) to have a better idea about the durability of the housing market recovery.
Great Graphic: The Fall and Rise of US House Prices
Reviewed by Marc Chandler
on
May 30, 2013
Rating:
Reviewed by Marc Chandler
on
May 30, 2013
Rating:
