IRVINE, CA-Case-Shiller Home Price Indices for July show greatly increased home prices outpacing what the FHFA's monthly Home Price Index had reported, according to Auction.com Research. The firm reports that both indices, which were released this week, show continued home price growth.
“According to the FHFA's monthly Home Price Index, home prices increased 1% in July from June, beating consensus expectations for a 0.8% increase,” says Peter Muoio, Ph.D., senior principal and economist with Auction.com Research. June's monthly price increase of 0.7% was not revised.
“FHFA's index now shows home prices up 8.8% from a year ago and only 9.6% below their April 2007 peak, which should serve to raise optimism regarding the continued prospects of the national housing market recovery and quash some of the prevailing fears regarding the prospect of a second-half slowdown in response to the rise in interest rates this summer,” Muoio adds.
Auction.com reports that the Case-Shiller 20-City Composite Index increased at an even greater monthly rate, with seasonally adjusted home prices growing 1.8% in July from a month ago. “The Case-Shiller index has outpaced FHFA growth estimates throughout 2013, but some news outlets are expressing concern regarding a deceleration in Case-Shiller index growth,” Muoio comments. “While it is true that the index's year-over-year gains appear to be leveling off, the more important fact is that growth in excess of 10%”—currently 12.4% for the 20-City Index, as GlobeSt.com reported earlier this week—“is still very strong, especially when an alternative index like the FHFA shows no sign of decelerating gains.”
Also GlobeSt.com reported earlier this week, the single-family housing sector is showing signs of improvement, while the multifamily sector seems to be slowing, according to Auction.com Research. Muoio reports that the Census Bureau's August housing starts data shows that multifamily starts decreased from July, while single-family starts have remained steady since 2009.
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