After showing repeated increases throughout last year, housing prices have continued to exhibit considerable appreciation in 2013.
Working with real estate records from 20 major metropolitan areas across America, S&P Dow Jones Indices recently released its latest S&P/Case-Shiller Home Price Indices, which detailed significant increases in housing prices in February, on both month-over-month and year-over-year bases.
"Home prices continue to show solid increases across all 20 cities," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices. "The 10- and 20-City Composites recorded their highest annual growth rates since May 2006; seasonally adjusted monthly data show all 20 cities saw higher prices for two months in a row – the last time that happened was in early 2005."
Average home prices for the 10- and 20-City Composites reportedly increased 0.4 percent and 0.3 percent, respectively, from January to February. On an annual basis, the composites exhibited respective growth of 8.6 percent and 9.3 percent.
In addition to residential home prices, consumer confidence levels also showed significant improvement recently. The Conference Board's Consumer Confidence Index for April moved up to 68.1, after having been recorded at 61.9 in March.
As individuals begin to feel more confident in their finances, lending companies may experience a heightened degree of safety and soundness while drafting agreements, as more borrowers are able to afford the loans and make payments on time.