US housing market bouncing back: S&P Case Shiller
The US Case-Shiller index of house prices rose 10.2% in the year to March, the fastest rate of increase in seven years.
US house prices fell by around 35% from their 2006 price peak. "The recent rebound is, in the context of the US banking and economic performance, good news," the Business Spectator economic columnist Stephen Koukoulas said.
"Despite the gains over the past year, house prices are still around 28%down from the peak. "It is an essential element helping consumers to rebuild their otherwise shattered balance sheets.
"From the banking sector’s perspective, rising house prices now, after the carnage of the 2008 to 2011 period, are also a positive development given the massive overhang of bad debts, low quality borrowers and their inability to boost credit given the absence of credit worthy borrowers," Stephen Koukoulas said.
