The newest S&P/Case-Shiller news boasted Atlanta as among the few major metros to display a surprising double-digit growth in home prices in May. The figure amounted to 20.1 percent year on year in May and has gone up to 3.4 percent from April to May. The April figure noted to be higher as well. Overall, the national figure of home prices increased 12.2 percent year on year and has gone up 2.4 percent from April to May.
“Home prices continue to strengthen,” said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “Two cities set new highs, surpassing their pre-crisis levels and five cities -- Atlanta, Chicago, San Diego, San Francisco and Seattle - posted monthly gains of over three percent, also a first time event.”
The US home prices are back to 2004 level as of May 2013. The US housing market is showing an encouraging signs of continued recovery despite lack of housing inventory. We might have apprehensions in the past few months on how sustainable can this housing recovery be but certainly Atlanta’s consecutive signs of recovery had shown how Atlanta market is getting stronger and better. This also helps the growing confidence of the home builders to build more houses due to high demand which in turn leads to construction and more job opportunities.
The 64 thousand dollar question is when will prices get back to 2006-2008 price levels before the housing bubble burst? But... this is a separate topic that we will address in the near future.
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