Home Prices in U.S. Case-Shiller Index May Pop: Chart of the Day
The rebound in U.S. home prices may be about to accelerate, according to Jonathan Basile, an economist at Credit Suisse in New York.
The CHART OF THE DAY shows year-to-year changes in the S&P/Case-Shiller 20-city home-price index compared with the Labor Department’s measure tracking prices paid to real estate agents and brokers from today’s report on producer prices.
The wholesale real-estate costs climbed 9.1 percent in the 12 months ended in April, the biggest year-to-year pop since 2005. The latest data available show the Case-Shiller index climbed 9.3 percent in February from the same month in 2012, making it the biggest gain since mid-2006.
If the correlation with the PPI real-estate index holds, then the Case-Shiller index may approach its 2005 year-to-year gains of almost 17 percent in coming months, according to Basile.
“Positive news on house prices should continue,” Basile said in research note.
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