| Videos | Channels | Search |
The truth about US Housing
The US housing market is back on track after home prices declined significantly during the economic recession. Data from the Case-Shiller index indicates that prices have risen by around 23 percent over the past two years.
Bob Johnson, Director of Economic Analysis at Morningstar, favours the Case-Shiller report because it compares home prices on an apples-to-apples basis. Other housing reports only generate the average sales price for a particular month based on data that incorporates a range of homes from both the high and low end of the spectrum.
The Case-Schiller report illustrates that home prices dropped sharply after the 2008 recession and remained low until 2012. Since then though, prices are up by around 23 percent with year-on-year figures reaching 13 percent. However, this growth rate is unsustainable according to Bob Johnson and already appears to have plateaued after a few months.
Home price rises will slow to around 5 percent, and although this is a significant drop from the current 13 percent growth rate, it represents a healthy and sustainable level of growth that can sustain the US housing market, according to Bob Johnson.
01:42 minutes
Tags: case shiller housing report, case shiller report, case-shiller housing, case-shiller housing report, case-shiller us housing, equity, growth, growth us housing market, home equity, home price comparision, home price recession, housing data, housing market, housing reports, owen thomas, owen thomas saxo tv, recession, saxo, saxo bank, saxo bank saxo tv, saxo bank trading floor, saxo tv, saxo tv saxo bank, saxo tv trading floor, saxo tv tradingfloor.com, sustainable growth, sustainable recovery, us home prices, us home sales, us housing, us housing data, us housing market, us housing recovery