The highly regarded Case Shiller/Standard & Poor index has found a 4.4% increase in US house prices in the second quarter. This follows the 2.8% contraction in the previous quarter, and leaves US home prices 3.6% higher than the second quarter of last year.
15 of the 20 cities included in the index saw prices up year on year, with San Diego and San Francisco experiencing the highest growth at 11% and 14% respectively.
David M Blitzer, chairman of the Index Committee at Standard & Poor’s, said: “Even with concerns about near term developments, we recognize that the housing market is in better shape than this time last year. Further, California’s cities have moved from some of the hardest hit to three of the four leading cities based on year-over-year gains.”
This follows some other positive news on the housing market in recent months. First there was a shock 4% rise in pending sales of existing US homes. And this was followed by Zillow, one of the biggest US property portals, revealing that the number of homeowners reducing asking prices fell for the first time in five months this August.
When the US housing market turned around in the beginning of last year many people rejoiced in a swift recovery, but this faltered when government stimulus was withdrawn. Many people had feared we would see a second dip crash, but reports like the ones above are beginning to allay such fears — slowly, but surely.