US home prices soar 12.2 percent in May from a year earlier, biggest gain since February 2006

  • Article by: CHRISTOPER S. RUGABER , AP Economics Writer
  • Updated: July 2, 2013 - 8:25 AM

WASHINGTON — U.S. home prices jumped 12.2 percent in May from a year ago, the most in seven years. The increase suggests the housing recovery is strengthening.

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pitythefoolsJul. 2, 13 7:36 AM

Corelogic and Zillow need to get on the same page. Last year Zillow showed most of the Twin Cities increasing less than 2%. Bounce around your favorite neighborhoods there and you'll see a forecast of around 2% for this year as well.

Why aren't they reporting the REAL news? Houses over $1M are doing well since the ultra rich were little affected by the recession. Houses in the middle are flat and still not selling at pre-bubble prices. Houses at the bottom end are being bid up by the 1% to be used as rentals. Within a few years the majority of housing in the US will be owned by the 1%, and we will rent from them.

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palsarJul. 2, 13 7:45 AM

Great, but when do we start to worry about a new housing bubble?

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jimcjensenJul. 2, 13 8:58 AM

Please do not rely on Zillow. The real results for the Twin Cities are even better----actual sales data not estimates. Great gains but we still are not back to 2005 -- 2007 levels----that's 6 to 8 years ago---hard to consider this comeback a bubble when we aren't even back to 6 to 8 years ago.

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peterschiffJul. 2, 13 9:02 AM

Two words: Shadow inventory. The banks are holding tons of properties off the market. Factor those in and adjust and you have falling prices without a doubt. Rising interest rates will put a halt to this ''buying opportunity''.

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sek2undrstndJul. 2, 1310:25 AM

Note to buyers AND sellers. This data is almost two months old because it reflects homes that CLOSED in May. Those homes most likely accepted an offer in April, a time when the market had the lowest inventory in over ten years and one of the lowest interest rates. Since then the inventory has increased, the interest rate has increased, and there are fewer buyers. These factors, most likely, will lead to price drops in June, July, and August and into the fall months when people realize they can't sell their homes at the over-inflated prices.

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snotshotzzJul. 2, 1310:27 AM

Another 15-years of this and my mortgage won't be underwater anymore!

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sek2undrstndJul. 2, 1310:29 AM

posted by jimcjensen "Great gains but we still are not back to 2005 -- 2007 levels----that's 6 to 8 years ago---hard to consider this comeback a bubble".......As a whole, the metro is not in a bubble. However, if you look at specific areas in the metro, you begin to see micro-bubbles which will surely pop with the rise in interest rates.

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garagewineJul. 2, 1311:03 AM

@jimcjensen Zillow's estimates are based on actual sales data.

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theagonybhoJul. 2, 1312:55 PM

Mostly deceiving data here, i think everyone would agree the housing market is doing a little better like 2-5% up. Most of the buying is due to interest being kept artificially low by the Feds. As you saw a few weeks ago the mere mention of easing mind you not stopping the stimulous sent the markets reeling. Once interest goes back to 6% where it should be we are headed for bubble number two.

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westman1Jul. 2, 13 1:51 PM

It's that socialist Obama's fault. Oh, wait... Never mind.

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