Home prices continue to rise in Los Angeles and the U.S., but overall, they're still down from a year ago.
May Case-Shiller numbers are out, and for Los Angeles, the news is good. Prices moved up 2.2 percent from April to May, according to the index, which tracks data for both a 10- and 20-city group. This reinforces a trend that we saw starting earlier this year.
In L.A., February-March saw a tiny 0.1-percent increase after a January-February month-on-month decline. But the March-April uptick was better: 1.5 percent. This could mean that prices are gaining a footing and could start to build on their gains.
And now April-May was better still. In fact, with a 2.2-percent increase, L.A. matched the composite, which was up 2.2 percent in the aggregate. However, year-over-year, L.A. home prices for the period were down more than for the overall index: a decline of 2 percent.
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A construction worker on the top of a home under construction at a new housing development on in Petaluma, California. If we have hit bottom, we may start seeing more of this kind of activity.
Zillow, the online real estate service, has called a bottom for the U.S. housing market. Literally. This is from today's release:
Home values in the United States have reached a bottom. The Zillow Home Value Index (ZHVI) rose on an annual basis for the first time since 2007, increasing 0.2 percent year-over-year to $149,300, according to Zillow's second quarter Real Estate Market Reports. Values have risen for four consecutive months.
A rise of 0.2 percent may not be terribly significant, so take this all with a healthy grain of salt — and an awareness that Zillow, as Chicago Now's Gary Lucido points out, indexes home values based on its own metrics, rather than on actual sales, as does the important Case-Shiller index.
Case-Shiller for May comes out next week, so you can look at Zillow's pronouncement and say, "Hmmm...interesting timing!" And you'd be on to something, because Case-Shiller has been signalling at least the formation of a bottom in U.S. housing prices for a few months now.