U.S. Housing Prices to Continue Stabilizing in 2013
S&P Case-Shiller Home Price Index up for 5th straight month, and up on a year-over-year basis for first time since 2010
CHIGAGO, Aug. 28, 2012 /PRNewswire/ -- BMO Economics commented today that higher equity and home values must be providing some much-needed comfort to U.S. consumers, following the release of the S&P Case-Shiller home price index for June which showed a more-than-expected rise of 0.9 per cent, seasonally adjusted.
"This represented the fifth straight monthly gain, and lands the index 0.5 per cent above year-earlier levels – the first positive reading in nearly two years," said Jennifer Lee, Senior Economist, BMO Capital Markets. "This report is very good news, and shows that prices are getting support from the pickup in demand for housing as well as fewer distressed homes on the market. It also represents a much-needed boost given the release of today's consumer confidence index for August, which shows a drop of 4.8 points."
A look at individual areas provided further encouragement, according to Ms. Lee. "Eighteen of the 20 metro areas saw home prices rise in June, the most since 2006. On a year-over-year-basis, 13 areas are now able to say that home prices have grown, including Phoenix, Miami and Minneapolis."
Ms. Lee noted that U.S. housing prices are likely to stabilize further in 2013, with demand improving on firmer job growth and easier lending standards.
| S&P/Case-Shiller Home Price Indices |
||
| Metropolitan Area |
% change, June/May (SA) |
% change, 1-year |
| Atlanta |
2.3 |
-12.1 |
| Boston |
0.5 |
0.0 |
| Charlotte |
-0.1 |
0.8 |
| Chicago |
1.7 |
-1.7 |
| Cleveland |
0.3 |
0.9 |
| Dallas |
-0.1 |
3.7 |
| Denver |
0.4 |
4.0 |
| Detroit |
3.6 |
2.5 |
| Las Vegas |
1.1 |
-1.8 |
| Los Angeles |
1.0 |
-0.6 |
| Miami |
0.7 |
4.4 |
| Minneapolis |
1.2 |
5.7 |
| New York |
0.8 |
-2.1 |
| Phoenix |
1.5 |
13.9 |
| Portland |
1.7 |
3.0 |
| San Diego |
0.4 |
-0.2 |
| San Francisco |
1.7 |
3.0 |
| Seattle |
1.0 |
1.8 |
| Tampa |
0.7 |
3.4 |
| Washington |
0.7 |
3.9 |
| SA=seasonally adjusted |
||
| Source: S&P Dow Jones |
||
About BMO Financial Group
For more than 193 years, BMO Financial Group has believed in community reinvestment and corporate and social responsibility in the communities it serves. In 2010, BMO contributed more than $54 million in donations, sponsorships and events in Canada and the United States to groups, organizations and programs that help build and sustain resilient, vital and healthy communities.
About BMO Harris Bank
Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 650 branches and approximately 1,350 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank(SM) and M&I® are trade names used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.
SOURCE BMO Harris Bank
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