The New York Times is reporting a spike in new prices in May compared with a year earlier. The 12.2% increase represents the biggest annual gain since March 2006. And according to The Standard & Poor’s / Case-Shiller 20-city home price index released o Tuesday rose 2.6% in May from April. During the March – April timeframe the percent increase was 2.6. Both of these reports lend further proof that the housing recovery is getting stronger.
Major housing markets including Dallas and Denver have reached the highest level on records dating back to 2000 measuring home prices. New home construction is also experiencing a healthy rebound from the halt that started in 2007 and lingered well into 2011. However, with consumer confidence staying near a five-and-a-half year high and low interest rates the housing market is expected to continue with its recovery.
Lynn Franco, an economist for the Conference Board told the New York Times, “Overall, indications are that the economy is strengthening and may even gain some momentum in the months ahead”. Combined with a more positive outlook on the current job market more families are looking at home buying and this trend is expected to continue.