Home Prices Rise. Celebration time? Not yet.
Home prices rose 0.8% in April compared with March and were up 3.8% from a year ago, according to the S&P/Case-Shiller Home Price Index of 20 major housing markets. However, prices, are still off 30% from their peak. That good news is tempered by a couple of factors. First, the one-year comparison was against a low-ebb mark. In April 2009, prices were just above a five-year low. Secondly, the improvement came during a time when the federal government was heavily subsidizing home sales through an $8,000 homebuyer's tax credit. That credit is about to expire.
"Other housing data confirm the large impact, and likely near-future pullback, of the federal program," said David Blitzer, a spokesman for Standard and Poor's. Only two cities saw values fall during the month. Miami prices fell 0.8% for the month, which pushed the city into negative territory for the year at -0.5%. New York dropped 0.3% month-over-month and is off 1% year-over-year, while the strongest rebound has been in California. San Francisco prices jumped 2.2% month-over-month and are up 18% year-over-year, more than any other city in the 20-city index. San Diego prices rose 0.7% compared with March and 11.7% since April 2009. Los Angeles prices rose 7.8% over the past 12 months, and 0.7% in April.
Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion
For American taxpayers, now on the hook for some $145 billion in housing losses connected to Fannie Mae and Freddie Mac loans, that amount could be just the tip of the iceberg. According to the Congressional Budget Office, the losses could balloon to $400 billion. And if housing prices fall further, the cost to the taxpayer could hit as much as $1 trillion. "Some of us who don't even own homes are paying to support others and their home ownership, and they ask ‘why?' said Robert J. Shiller, a Yale University economics professor and co-creator of the S&P/Case-Shiller Home Price Indices. The indices measure the US residential housing market by tracking changes in the value of residential real estate both nationally and in 20 metropolitan regions. Shiller added that the mission of Fannie and Freddie should be severely cut back "so that they're not helping middle-class homeowners, [but] they're helping poor people get into the housing market."
Find Your Ideal Home With Our Free MLS Search Engine! Germantown Clarksburg Darnestown & More! This is the way to shop for properties! Narrow your search by entering exactly the features you're looking for! We Can Put You On Our Automated MLS Search Which Will E-Mail You When Properties Matching Your Criteria Enter The System On Day Zero On The Market! No Cost Or Obligation! Never Miss Out On That Pertect Property Again!
Click Here For Free MLS Access... HomesByRobandJeannie.com
Rob & Jeannie Steward ~ Weichert, Realtors ~ 20400 Observation Dr, Ste 200 ~ Germantown, Maryland 20876 ~ Direct: (301) 213-7351 ~ Office: (301) 540-1330 x180 ~ Fax: (301) 601-0250 ~ E-Mail: Rob.Jeannie@gmail.com ~ www.HomesByRobandJeannie.com ~ We Work Twice As Hard For You!
Comments(0)