Make us your home page
Instagram

Home prices climb 8.3 percent in a year, CoreLogic reports

WASHINGTON — U.S. home prices in December were 8.3 percent higher than a year earlier, the strongest advance since May 2006, CoreLogic said Tuesday. But the data also show the considerable distance to go before the housing market reaches prerecession peaks.

The December price gain was 0.4 percent compared to November.

CoreLogic said 46 of 50 states registered gains for the year. Arizona has the strongest year-on-year appreciation at 20.2 percent, though prices are down 39.8 percent there from the peak. Nationally, prices are down 26.9 percent from the April 2006 peak.

Mortgage rates near record lows, a dwindling backlog of foreclosures, waning distressed-property activity and a slowly improving job market have all put a wind at housing's back. Low inventories of both existing and new properties also have helped prices. That has given a big stock price lift to those firms who rely on the housing market, among them builders and banks.

In a note to clients published Tuesday, Bank of America Merrill Lynch analyst Michelle Meyer forecasts prices to rise about 5 percent this year, with housing starts up 25 percent.

Meyer said the market still isn't back to normal, with credit availability among the biggest worries. "We anticipate some easing of lending standards this year, but it likely will take time for credit to flow freely again," Meyer said.

The Federal Reserve's senior loan officer survey, released Tuesday, showed lending standards remain tight.

Separately, online residential real estate site Trulia said asking prices were up 5.9 percent year-on-year in January, while rents rose 4.1 percent. According to Trulia, that marks the first time since the recovery began that rent gains have been outpaced by price gains.

According to Jed Kolko, Trulia's chief economist, the slowdown in rent increases is due to more supply rather than less demand.

Service sector

growth slows

Growth at U.S. service companies slowed slightly in January behind weaker new orders and business activity. The Institute for Supply Management said Tuesday that its index of nonmanufacturing activity dipped to 55.2 in January. That's down from 55.7 in December, which was the highest level in nearly a year. Any reading above 50 indicates expansion. The report measures growth in industries that cover 90 percent of the workforce, including retail, construction, health care and financial services.

Associated Press

Home prices climb 8.3 percent in a year, CoreLogic reports 02/05/13 [Last modified: Tuesday, February 5, 2013 9:54pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Tribune News Service.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. Trumps travel ban to be replaced by restrictions tailored to certain countries

    Nation

    WASHINGTON — President Donald Trump's ban on travelers from six majority-Muslim countries is set to be replaced as soon as this weekend with more targeted restrictions on visits to the United States that would vary by country, the New York Times reports, citing officials familiar with the plans.

    President Donald Trump's ban on travelers from six majority-Muslim countries is set to be replaced as soon as this weekend with more targeted restrictions on visits to the United States that would vary by country, officials familiar with the plans said Friday. The new restrictions, aimed at preventing security threats from entering the United States, could go into effect Sunday after the conclusion of a 90-day policy review undertaken as part of the administration's original travel ban. Though the restrictions would differ for each country, people living in the targeted nations could be prevented from traveling to the United States or could face increased scrutiny as they seek to obtain a visa. [Associated Press]
  2. In dollars: How valuable are Florida's university football programs?

    Business

    The University of Florida football program is valued in a new study at $682 million, making it the most valuable university team in the state but still worth far less than several college programs topping $1 billion. Four years ago, UF's program was valued at just under $600 million.

    The University of Florida football program is valued at  $682 million, making it the most valuable by far in the Sunshine State. Pictured are UF cheerleaders leading the crowd in a Gator cheer on Clearwater Beach last December during the Outback Bowl Beach Day on Clearwater Beach. [SCOTT KEELER   |   Times]
  3. After 22 years, it's last call for beloved Ybor venue New World Brewery

    Music & Concerts

    YBOR CITY — Steve Bird spreads his tools across a patio table. He has awnings to unbolt and paraphernalia to unpry, from the busted Bop City neon by the stage to the Simpsons "El Duffo o Muerte" mural in the courtyard. He'll uproot a fountain and dismantle a roof and attempt to keep his bar intact. The …

    Various decor and memorabilia fill the walls and shelves at New World Brewery in Ybor City.
Long time music venue and hangout New World Brewery in Ybor City will be closing it's doors and moving locations. Patrons enjoy one of the last events before New World Brewery changes its location to Busch Blvd in Tampa.  [Photo Luis Santana | Times]
  4. Florida bought more Pasta Passes from Olive Garden than almost any other state

    Food & Dining

    Floridians would like their bowls of pasta to never, ever end.

    Florida was the No. 2 state with the largest number of Olive Garden Pasta Pass purchases, an unlimited pasta pass for $100. Photo courtesy Olive Garden.
  5. Trigaux: Tampa Bay household income tops $50,000 but still makes us look poor

    Personal Finance

    The good news is Tampa Bay's median household income finally crawled above $50,000 last year. The bad news is that figure — officially $51,115 by new U.S. Census Bureau data — still puts the Tampa Bay region as the poorest of the nation's 25 largest metro areas.

    Tampa Bay still has the lowest median household income among the 25 most populous metro areas, according to U.S. Census Bureau data.
[Times]