Home prices are rising again
By a lot, too. The Case-Shiller Housing Index is up almost 11% in the last year. Some cities are booming twice as fast. Los Angeles, Detroit, and Las Vegas home prices are up 20% in the last year. All of these are the biggest annual gains since 2006, when the housing bubble peaked.
We're not in a new housing bubble. Prices are bouncing off the deepest plunge since the Great Depression, and measured against rents and incomes, homes still look cheap. Bloomberg shared an amazing statistic this week: Detroit home prices are still so low that "it takes a mortgage rate of 35.8 percent to make renting more economical [than owning]."
But don't hold your breath for these gains to continue.
Home prices are surging because the supply of homes on the market is low. The number of homes on the market will now cover only about four months of sales at current rates. That's the lowest since 2004:
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S&U Plc provides consumer and motor finance services in England, Wales, and Scotland in the United Kingdom. It offers home credit consumer finance and motor finance. The company also provides rental and other retail trading services, as well as insurance brokerage services. It serves approximately 140,000 customers. The company was founded in 1938 and is based in Solihull, the United Kingdom.
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Beacon Minerals Limited engages in the exploration and development of mineral properties in Australia. The company primarily explores for gold mineralization, as well as for uranium and nickel ores. It principally holds interest in approximately 300 square kilometers of prospective ground in 3 tenements in the Barlee gold project located in the Murchison District, Western Australia. The company is based in West Perth, Australia.
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