The S & P Case Shiller Index numbers were announced and as of October housing prices have risen for the 9th month in a row. While reports have been trickling in that have indicated that the economy is improving and will continue on this track, economists look to the case shiller index as an official indicator. The S & P Case Shiller is an index of 20 metropolitan areas and it gained .7% in October. This index is seasonally adjusted and the number announced is .5% more than what Reuters economists predicted. Chairman of the S & P David Blitzer released this statement today, “Looking over this report, and considering other data on housing starts and sales, it is clear that the housing recovery is gathering strength.”
Experts speculate that low mortgage rates and job growth have kept the housing market rebounding, and while some anticipate homes facing a downward pressure from released distressed properties from banks, the inventory in many markets, especially in South Florida, is reduced and bidding wars are ensuing. Prices in 20 cities rose 4.3% which exceeded expert expectations by .3%. Further, housing is said to have contributed 10% to the overall US economic growth in the 3rd quarter, despite the fact that the sector represents less than 3% of the gross domestic product. This is really astounding news. US officials announced that the GDP was stronger than an anticipated 3.1% in the third quarter. We are thrilled to report this news, especially as we close the year.