The S&P/Case-Shiller home price index for June rose sharply compared with the May index and house prices were higher on an annual basis as well. The national composite rose 1.2% for the second quarter of 2012, and the 10- and 20-city composite indexes were also higher, marking the first time in two years that the second-quarter price has shown positive growth.
Compared with May house prices, the 20-city composite rose 2.3% while the 10-city composite rose 2.2%. All 20 cities showed month-over-month gains. Only two cities in the 20-city composite posted an annual decline — Charlotte and Dallas.
The chairman of the S&P index committee said:
We seem to be witnessing exactly what we needed for a sustained recovery; monthly increases coupled with improving annual rates of change. The market may have finally turned around.
Increased sales of new homes and low mortgage rates continue to fuel house prices. Now if unemployment would only fall, we might see even more improvement.