The U.S. housing market continued to show signs of recovery with the latest S&P/Case-Shiller 20-city composite index posting a 2.3 percent month-to-month gain in home prices for June, and up 0.5 percent from the same month last year. It is the first year-over-year increase since 2010. The index also showed that all 20 cities gained as compared with May, which also saw a month-over-month gain in all cities on the index.
Among the best performers in June were Detroit, which led all gainers with a 6-percent increase; Chicago, which gained 4.6 percent; and Minneapolis, which rose 4.8 percent.
Some of the factors attributed to the price gains include historically low mortgage rates and attractive pricing. In addition, private lending may be finally be opening up as well--for better or worse--as private jumbo loans are making a comeback.
The market will have to wait and see whether perspective homebuyers are actually encouraged to buy before prices continue to increase or get discouraged as prices extend beyond their budgets.
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