Housing market recovery: Home prices have risen to the greatest extent in two years

Housing market recovery: Home prices have risen to the greatest extent in two years Percentage increase in home prices compared with the same period last year Based on...

Housing market recovery: Home prices have increased to the greatest extent in two years Percentage increase in home prices compared with the same period last year According to the S&P/Case-Shiller National Home Price Index using housing price data in 20 major cities index) latest shows that as the recovery of the housing market continues to heat up, the percentage increase in house prices has reached the largest level in two years. The index showed that compared with the same period last year, house prices rose 4.3% in October this year, the largest increase since May 2010, but still 29% lower than the peak in June 2006. At the end of 2009 and early 2010, there was a short-term rise in housing prices, mainly stimulated by tax incentives for first-time home buyers of up to 8,000 yuan. In recent months, a number of other phenomena besides rising home prices have marked a recovery in the housing market. For example, mortgage rates have fallen to record lows, the unemployment rate has dropped, and the foreclosure rate has dropped to its lowest level in five years. These are all signs that the housing market is in short supply, causing housing prices to rise. Rising home prices in turn boost home sales as well as home construction. Existing homeowners have a better chance of selling their old home and raising the down payment for a new one. Potential buyers who previously had a wait-and-see attitude due to uncertainty about housing price trends can use this to make up their mind to buy a house. Of course, residential home builders have also benefited from rising house prices. It is reported that the stocks of several major mainstream builders such as PulteGroup (PHA), Lennar (LEN), KB Home (KBH), D.R. Horton, Inc. (DHI) Toll Brothers (TOL) have risen by at least 50% in the past year, and PulteGroup's stock price has almost tripled.