Share

FIRSTonline Banner

Usa: good real estate market and consumer confidence

Real estate prices grew nationally by 10,1% in the April-June period compared to the second quarter of 2012, reaching the highs of the first quarter of 2004 - As for consumer confidence, the index compiled by the Conference Board rose this month at 81,5 points, from 81 in July, exceeding analysts' estimates (78)

Usa: good real estate market and consumer confidence

Good news on the real estate market and on US consumer confidence. US home prices rose in June, albeit less than the previous month. The Standard & Poor's/Case-Shiller index, which measures the trend in house prices in the twenty major metropolitan areas of America, grew by 12,1% in June compared to the same period in 2012. An increase not far from 12,2% expected by analysts. 

Again on an annual basis, a +12,2% was recorded in May, the largest leap since March 2006. In June, the component that measures price trends in the ten largest metropolitan areas grew by 2,2% compared to May (as in the 20 largest cities) and by 11,9% compared to June 2012.

Today's report also includes quarterly data relating to the national market, where prices rose by 10,1% in the April-June period compared to the second quarter of 2012, reaching the highs of the first quarter of 2004.

However, the study contains an invitation to caution: “In general – we read -, the report shows that house prices are increasing, but the rate is decelerating. In 14 out of 20 cities, a weakening was seen from May to June. In fact, the rise in mortgage rates could discourage some buyers.

As for US consumer confidence, the index compiled by the Conference Board, a private research group, rose this month to 81,5 points, from 81 in July. The figure is better than analysts' estimates, which expected a drop to 78 points.

"Confidence has increased slightly, as a result of improved short-term expectations," said Lynn Franco, head of the index's editorial board, noting that "consumers are moderately more convinced about the outlook for companies, employment and profits" .

The component that measures expectations over the next six months rose from 86 to 88,7 points. The score on the current situation dropped from 73,6 to 70,7 points.

comments