Business

December 3, 2013

US home prices rise just 0.2 percent in October

WASHINGTON — A measure of U.S. home prices rose only modestly in October, adding to signs that prices have stabilized after experiencing big gains earlier this year.

Real estate data provider CoreLogic said Tuesday that prices increased 0.2 percent in October from September. That’s up from a 0.1 percent gain in September. But it is down sharply from a 0.9 percent increase in August.

One reason for the slowdown is that the figures aren’t adjusted for seasonal patterns. Prices usually decline in the fall and winter, when sales slow.

Still, large gains during the previous months, along with higher mortgage rates, may be pricing some buyers out of the market.

Home prices have risen 12.5 percent from a year ago. The increase could encourage more sellers to put their homes on the market, easing a shortage of homes for sale.

Only 1.88 million homes were on the market at the end of October, down 2.1 percent from the previous month and the fewest since March.

The shortage of inventory has affected sales. Home re-sales fell in October for a second straight month to a seasonally adjusted annual pace of 5.12 million, the lowest since June, according to the National Association of Realtors. That pace is still 6 percent higher than it was a year earlier. But it’s below the roughly 5.5 million sold each year in healthier markets.

Some sales were delayed in October due to the 16-day partial government shutdown, the Realtors’ group said. The shutdown prevented the IRS from verifying incomes, a critical part of the mortgage-approval process. Those sales may have been pushed into November or December.

But a measure of signed contracts to buy homes fell for a fifth straight month in October. That points to weaker final sales in the coming months. Final sales typically occur one to two months after contracts are signed.

According to CoreLogic, prices rose in October from the previous year in all states except New Mexico. The biggest gains were in Nevada (25.9 percent), California (22.4 percent), Georgia (14.2 percent), Michigan (14.1 percent) and Arizona (14 percent).

Ninety-six of the 100 largest metro areas reported price gains from the previous year. That’s down from September, when all 100 cities reported gains.

The biggest increase was in Riverside, Calif., with 24.1 percent, followed by Los Angeles (22.1 percent), Atlanta (16.4 percent), Phoenix (15.9 percent) and Chicago (12.3 percent).

Home prices are still about 17 percent below the peak reached in April 2006, according to CoreLogic.

 

1
Text Only
Business
  • New Dalton lab could create 15 to 20 jobs

    A new laboratory opening in Dalton on Tuesday is expected to create 15 to 20 jobs over the next couple of years for chemical engineers, chemists and lab technicians, according to company officials.

    April 11, 2014

  • Next year’s high-skilled visas snapped up in days

    Businesses seeking highly skilled workers from overseas took less than a week to snap up all 85,000 visas available for next year, the U.S. Citizenship and Immigration Services announced Monday.

    April 8, 2014

  • Study looking at ways to bring more manufacturing to area

    Technology is changing every part of the economy, including manufacturing. Advanced machinery and manufacturing processes require workers with new and advanced skills.

    April 2, 2014

  • Werner Braun: Saying goodbye to CRI

    It’s time to say farewell.
    For the past 14 years, I have had the honor of serving as the president of the Carpet and Rug Institute (CRI), and what an honor it’s been.

    March 27, 2014

  • Carpet Capital Association of Realtors

     Uh-oh! Another prospective buyer upset with me again! Our phone conversation didn’t go very well. He didn’t like the questions I asked, or the advice I offered. Wait, the phone’s ringing ...

    March 21, 2014

  • Werner Braun: Relay for Life honors cancer survivors

    It’s the rare few among us who haven’t been touched by the lives of friends or family members who have been given a diagnosis of cancer. I know I have.

    March 20, 2014

  • Werner Braun at DGCC 3 mlh.jpg Friends, industry leaders saying goodbye to Braun

    When Werner Braun’s family immigrated from Germany, they came with all of their belongings in three suitcases and none of them spoke any English.

    March 18, 2014 3 Photos

  • Yarbrough named CRI president

    After a “rough half decade,” the carpet industry has begun to bounce back, and Joe Yarbrough said he looks forward to helping it grow.

    March 13, 2014 1 Story

  • Werner Braun: Sustainability from a facility manager’s perspective

    Sustainability means different things to different people, but from the facility manager’s perspective, sustainability can be viewed somewhat like a three-legged stool: a stool that balances specifications, installation and maintenance.

    March 13, 2014

  • Area jobless rate up slightly

    Metro Dalton’s unemployment rate increased to 9.5 percent in January, from 9.4 percent in December 2013, according to the Georgia Department of Labor. The rate was 11.9 percent in January 2013.

    March 13, 2014

AP Video