TRADEX GLOBAL INTERNAL COMMENTARY
FHFA reports a 0.2% rise in home prices in July, based on
Fannie and Freddie mortgages. The June
gain was revised to 0.6%, from a previously reported 0.7%. Prices compared to July 2011 are up 3.7%
(does anyone remember “HPA”?).
Case-Shiller reported a slightly different number of a 0.4% gain. It is constructed differently, using 3 months
worth of data rather than 1 month.
Either way, this is positive news and long awaited! We think that this sector has seen the worst
and is poised for improvement. Keep
nimble - Michael Beattie
EXTERNAL RESEARCH COMMENTARY
Home Prices
U.S. house prices rose a seasonally adjusted 0.2% in July,
according to the Federal Housing Finance Agency's monthly house price index
based on Fannie Mae or Freddie Mac mortgages. June's gain was revised to a 0.6%
gain from a previously reported 0.7% increase. Compared to July 2011, FHFA
reports prices are up 3.7%. Earlier, S&P reported the Case-Shiller 20-city
composite index rose 1.6% in July, or a 0.4% gain after seasonal adjustment.
The Case-Shiller index is constructed differently and also includes three
months rather than one months of transactions as the FHFA index does.
Case-Shiller
Case-Shiller
Home prices posted their first six month winning streak in
three years, according to the S&P/Case-Shiller indexes. The composite
20-city home price index, a key gauge of U.S. home prices, was up 1.6% in July
from the previous month and increased 1.2% from a year earlier. Sixteen of the
20 cities posted annual increases in July. Atlanta, Chicago, Las Vegas and New
York notched annual declines. Every city posted a monthly increase compared to
June. “While the index, and prices more generally, remain well below pre crisis
levels, the improvement in the last few months has been noticeable and perhaps
more importantly, more rapid than previous episodes of fleeting improvement,”
said economists at BTIG Economics.
But they added some caveats: “While we have been ‘housing enthusiasts,’ we want
to stop short of sounding too encouraged. There is almost no doubt that some of
the improvement seen of late has to do with less short and foreclosure sales
which in turn helps boos aggregate pricing data.”
Tradex Global Advisory Services, LLC
investorrelations@thetradexgroup.com
203-863-1500
@Tradex_Global
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