Home prices in the U.S. were up 8.6 percent over 2012 based on a ten city average by Standard and Poors (S&P)/Case-Shiller. The S&P Home Price Index of the 20-City Composites showed a shaper 9.3 percent increase in average home values. Month-to-month, the home price indices were up 0.4 percent in the 10-city and 0.5 percent in the 20-city.
"Home prices continue to show solid increases across all 20 cities," said David M. Blitzer, Chairman of the S&P Dow Jones Index Committee. "The 10- and 20-City Composites recorded their highest annual growth rates since May 2006; seasonally adjusted monthly data show all 20 cities saw higher prices for two months in a row – the last time that happened was in early 2005."
The new figures are thought to be indicative of continued health in the real estate market despite several weak economic indicators in March 2013. Jobs fell while payroll numbers stagnated in the third month of the year, but the real estate market was consistently a bright spot.
Some industry insiders are concerned that much of the real estate market strength is driven by investors who tend to purchase properties in cash in the hopes of generating income to rent them out.
Content provided by executive search organization, MRINetwork.