U.S. House Prices Climbed 7.3% in Year Through May

[Purveyor]

Source: Bloomberg

By Prashant Gopal - Jul 23, 2013
U.S. house prices rose 7.3 percent in the year through May as buyers competed for a small supply of listings, according to the Federal Housing Finance Agency.

Prices increased 0.7 percent on a seasonally adjusted basis from April, the FHFA said in a report today from Washington. The average economist estimate was for a 0.8 percent gain, according to data compiled by Bloomberg.

Real estate values are climbing as improving employment helps draw buyers into the market for a tight inventory of homes. A separate report today from Zillow Inc. showed U.S. home values rose 2.4 percent in the second quarter from the previous three months. It was the biggest gain for a second quarter since 2004, the Seattle-based property-research company said.

“The U.S. housing market as a whole is currently not experiencing a bubble, but in many places it sure must feel like one,” Zillow Senior Economist Svenja Gudell said in a statement. “Homeowners are feeling a sense of whiplash after years of depreciation.”

Read more: http://www.bloomberg.com/news/2013-07-23/u-s-house-prices-climbed-7-3-in-year-through-may.html

[dixiegrrrrl]

1. Banks and Chinese are doing the majority of buying

according to the housing blogs I read.
Most of the sales are in cash, often way over the asking price in a bidding war of those who have money to hand.
Bansk are using houses as rental cash machines.

[bhikkhu]

2. Here is a good article on the buying from China:

http://money.cnn.com/2013/07/08/real_estate/chinese-homebuyers/index.html

it seems significant in four states, but much less in the rest. Personally, I think its a good thing, supporting schools, local governments, home values, etc.