Over the 12-month period, prices increased in 90 percent of cities. Phoenix was amongst the highest, jumping approximately 20 percent. Even the hardest hit state, Las Vegas, saw a price increase of 1.4 percent, the biggest gain in a long time. Cleveland, was the largest decline where prices fell 0.9 percent.
Since monthly prices are not seasonally adjusted, some of the declines may signal the end of the summer buying period. Despite the seasons, housing continues to improve. These steady increases in home prices have helped drive a modest recovery in the housing market. These higher prices may be more encouraging to buyers. More people looking to sell their property could also be more likely to put their house on the market.
With about 70 percent of the U.S economy account for consumer spending, homeowners who see a increase in their property value might also be more likely to spend more.
At this time, more people are living with relatives or friends. As housing prices continue to gradually increase, these people may be more likely to move into a new place.
Builders can also be seen with a little more confidence during these times. During this month, their confidence rose to a new high after six and a half years. Builders broke grounds on new property at the fastest pace in more then four years this last month alone.