Winter Housing Market Proves White Hot

The numbers are in and the housing market remains strong, with growth in home prices, consumer confidence boosts and regained equity. The latest S&P Case-Shiller 20-city home price index climbed 1.05% month-over-month in October, beating expectations and boasting a 13.45% year-over-year rise. This was the largest gain

recorded since February 2006.

“Both Composites’ annual returns have been in double-digit territory since March 2013 and increasing,” said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices in a press release.

Bolstered by these significant home price gains, homeowner equity saw similar progress this year. According to a recent report by CoreLogic, more than three million residential property owners regained lost equity in 2013.

Additionally, The Conference Board’s Consumer Confidence Index® jumped 6.1 points month-over-month in December. Lynne Franco, Director of Economic Indicators, noted sentiment regarding current economic conditions is at its highest level since April 2008, “with consumers attributing the improvement to more favorable economic and labor market conditions.”

As consumers become increasingly confident in a stabilizing economy, home buying is on the rise. “People are buying houses for the absolute right reasons,” said Earl Lee, CEO of HSF Affiliates LLC in a recent interview with Fox Business. “It’s a place to live; it’s a place to bring up your family. They’re not looking at it as a

vinyl-sided ATM.”