Posted on 07/30/2013 7:31:21 AM PDT by whitedog57
The S&P/Case-Shiller index of house prices climbed 12.2 percent from May 2012, the biggest 12-month gain since March 2006, after advancing 12.1 percent a month earlier.
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The Case-Shiller index is separating from the MBA Purchase Application Index. The MBA numbers are due out tomorrow.
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Here is a breakdown of the Case-Shiller index. Los Angeles, which accounts for a whopping 15.1% of the Case-Shiller 20 house price index, posted a 19.2% YoY gain. San Francisco posted a 24.5% gain, and 23.3% in Las Vegas. New York posted the smallest gain at 3.3%.
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The big surprise? Bankrupt Detroit gained 19.1%, although its level is far below the national average.
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If we compare Case-Shiller 20 with the LPS and FNC house prices indices, we see similarities (with CS and LPS being very close and FNC not showing the steep increases).
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According to CoreLogic, Florida, New Jersey and New York have the highest percentage of foreclosed inventory.
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Lastly, the Conference Board Consumer Confidence index fell to 80.3. It still remains below levels last seen in 2008.
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Detroit, who would have thought?
Speculative purchases based upon the hope of regulatory reform.
Yeah, I’d sure describe Detroit as a “winner.”
So the $500 houses are now worth $650?
It’s hard *not* to go up from nothing.
Vulture investors.
The place would be valuable if you could buy the whole thing and eject the current inhabitants. Maybe someone will?
I don’t think this pertains to the city. This must include the outlying areas, where it is a fact, the housing market is booming. We live about 45 miles from Detroit and one has to be on the ball to get a nice home. From listing to offer... mere hours. We got ours before it even hit the market by canvassing subs and asking if anyone in the area was going to move anytime soon... and by the Grace of God too, of course.
Mr. Donald Trump? Please pick up the white Courtesy Phone in the Lobby!
You are on to something.
Downtown Detroit is home to one of the worst housing markets in the country, as prices of homes have collapsed and foreclosures have soared in the city’s depressed economy.
But some Chinese investors hungry for real estate are hoping Detroit’s losses will be their gain. After Detroit filed for bankruptcy July 18, Motor City property has been a hot topic on China’s social media platform, Weibo, according to a Quartz.com report.
News of the bankruptcy, coupled with a Chinese TV report in March that claimed you could buy two houses in Detroit for the same price as a pair of leather shoes, has piqued investors’ interest.
$5 house is now worth $6.50
The Chinese are buying properties in the hundreds at a time.
And no, I am not kidding. There was an article about it here the other day.
No doubt these Chinese investors never actually experienced the wonder that is inner-city Detroit in person.
Reportedly, they are doing so sight unseen, relying on local realtors to "pick the best ones".
Japanese investors were doing the same thing back in the 80's, just before their economy crashed.
Investors do not make neighbors.
Good people, caring for their surroundings make neighbors.
Regulatory and tax reform in Michigan as well. Its part of what will have to happen in Detroit as well.
Small gains in small prices aren’t that remarkable.
A $5000 house going to $5500 isn’t the same as $100k house going to $110,000.
Word up: About 1/3 of Chapter 9 cases end up being dismissed. The process has a critical review point about 30 days in. If Detroit’s petition is rejected, you go right back into the fire with the political process that got them here in the first place. I sure as hell wouldn’t be buying real property there now.
The housing prices are probably soaring because quality single-family houses are becoming an endangered species in some cities, and new HUD regulations will accelerate that trend. HUD intends to basically shut off expansion of suburbs, thereby forcing all new development into existing urban and suburban areas. This means higher density and fewer single family homes.
Driven up by the Chinese entry into the market. Seen the same thing happen on certain neighborhoods (Bridgeport) in Chicago. Excepting the areas are relativly secure and I’ll bet it’s the same in Detroit.
I think it’s the clean air and clean water they are craving:)
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