The Case-Shiller Home Price Index was released this morning, showing that home prices rose 2.4% for the month of May. This nearly matched the previous monthly gain of 2.6%, which is the highest on record. On a year-over-year basis, home prices rose 12.2%. These are the best year-over-year gains we have seen since March 2006.
This was a very strong report, but we need to keep in mind that these figures are for May. It will be more telling to see what this index shows over the next two months when the rise in rates is factored in. The normally reserved and often bearish Robert Shiller said that there is not a better sure bet in the financial world than real estate right now.
And here’s some more good news on housing. CoreLogic reported this morning that foreclosure inventory has declined more than 28% year-over-year. Less that 5.5% of all mortgages are seriously delinquent. This is the lowest level since December 2008. Completed foreclosures are also down 20% since last June.
Source: National Mortgage News