Av­er­age U.S. home price hits $191,000

Financial Mirror (Cyprus) - - FRONT PAGE -

Real es­tate in the United States is on the mend, but there are widely dif­fer­ent opin­ions about by how much.

De­pend­ing on which real es­tate data an­a­lysts use, the hous­ing mar­ket in Amer­ica is ei­ther red hot or im­prove­ments have slowed con­sid­er­ably. In­for­ma­tion from Real­tyTrac sup­ports the rapid im­prove­ment case. Ac­cord­ing to its lat­est re­port on prices, the me­dian price of a home sold in the U.S. in July was $191,000. That fig­ure was a sharp rise both month over month and year over year:

The me­dian price of res­i­den­tial prop­er­ties sold in July - in­clud­ing both dis­tressed and non-dis­tressed sales - was $191,000, up 3% from the pre­vi­ous month, and up 12% from a year ago to the high­est level since Septem­ber 2008, a 70month high.

Other re­cent re­search shows much more muted im­prove­ment. This is es­pe­cially true with the care­fully fol­lowed S&P/Case-Shiller re­port. Data to June 2014, re­leased by S&P Dow Jones In­dices for

S&P/Case-Shiller Home Price In­dices, the lead­ing

its mea­sure of U.S. home prices, show a sus­tained slow­down in price in­creases. The Na­tional In­dex gained 6.2% in the 12 months end­ing June, while the 10-City and 20-City Com­pos­ites gained 8.1%; all three in­dices saw their rates slow con­sid­er­ably from the pre­vi­ous month. Ev­ery city saw its year-over-year re­turn worsen.

Ob­vi­ously, both the method­ol­ogy and time pe­ri­ods of the two stud­ies are dif­fer­ent. How­ever, they do paint sharply dif­fer­ent views.

Real­tyTrac in­for­ma­tion shows the markedly dif­fer­ent mar­ket to mar­ket:

States with the big­gest an­nual in­crease in me­dian sales prices were Michi­gan (+24%), Ohio (+20%), Vir­ginia (+20%), Min­nesota (+14%) and New York (+13%).

Met­ros with the big­gest an­nual in­crease in me­dian sales price in­cluded Detroit (+33%), Day­ton, Ohio (+31%), Stock­ton, Calif., (+24%), Modesto, Calif., (+22%), Cleve­land (+20%), and Mi­ami (+19%). Some of the in­crease prob­a­bly can be ac­counted for be­cause the mar­kets with the great­est

im­prove­ments

are im­prove­ments where those most badly dam­aged as the real es­tate bub­ble burst. This is cer­tainly true of Michi­gan, Ohio, Detroit, Cleve­land and the two Cal­i­for­nia ci­ties.

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