Home Prices Make Biggest Yearly Jump Since 2006 - Spokane, North Idaho News & Weather KHQ.com

Home Prices Make Biggest Yearly Jump Since 2006

Posted: Updated:

NBCNEWS.COM - U.S. single-family home prices rose in May, the biggest annual jump since 2006, a closely watched survey showed on Tuesday.

The S&P/Case Shiller composite index of 20 metropolitan areas gained 1 percent on a seasonally adjusted basis, shy of economists' forecast for a 1.5 percent increase. That marked a slower pace from April's 1.7 percent rise.

On a non-adjusted basis, prices rose 2.4 percent.

Compared to May 2012, prices also fell short of expectations, rising 12.2 percent from a year earlier. Still, it was the biggest annual gain since March 2006, matching a record set in April.

The report was unlikely to alter economists' views that the housing sector continues to recover, making it a bright spot for the economy.

"The cities that bubbled in the past are bubbling again," Robert Shiller, economist and co-founder of the S&P/Case-Shiller Home Price Index, told "Squawk on the Street" on Tuesday.

"To me, it seems to be at least partly psychological. They've seen it before and they're ready for it again … It seems like California has historically been the most bubbly state in the country and it continues."

Shiller said that the new factor emerging in the numbers is the effect of institutional investors on home prices. "They've learned about momentum and they're saying 'hey, this is it.' The housing market is showing a lot of upward momentum. And you know, I think they're probably right, at least for the short term."

"For a flipper who can get out in about a year, it seems to be a fairly safe bet," he added.

All 20 cities rose on a yearly basis, led by a 24.5 percent surge in San Francisco.

  • Most Popular StoriesMost Popular StoriesMore>>

  • PHOTOS: Flash flooding & mudslides trap people in Okanogan County

    PHOTOS: Flash flooding & mudslides trap people in Okanogan County

    Friday, August 22 2014 9:12 PM EDT2014-08-23 01:12:14 GMT
    OKANOGAN COUNTY, Wash.- Okanogan County Sheriff Frank Rogers tells KHQ that as of 5:00pm Friday evening, Highway 20 is back open and no homes are threaten after numerous mudslides washed out roads and stranded drivers Thursday night and Friday morning. >>
    OKANOGAN COUNTY, Wash.- Okanogan County Sheriff Frank Rogers tells KHQ that as of 5:00pm Friday evening, Highway 20 is back open and no homes are threaten after numerous mudslides washed out roads and stranded drivers Thursday night and Friday morning. >>
  • PHOTOS: CASH REWARD offered for information leading to the arrest of these FUGITIVES

    PHOTOS: CASH REWARD offered for information leading to the arrest of these FUGITIVES

    Friday, August 22 2014 7:41 PM EDT2014-08-22 23:41:09 GMT
    SPOKANE, Wash. - Crime Stoppers of the Inland Northwest is offering cash rewards for any information leading to the arrest of the fugitives listed on their website as of August 21, 2014. If you recognize any of these fugitives, you are asked call 1-800-222 TIPS.>>
    SPOKANE, Wash. - Crime Stoppers of the Inland Northwest is offering cash rewards for any information leading to the arrest of the fugitives listed on their website as of August 21, 2014. If you recognize any of these fugitives, you are asked call 1-800-222 TIPS.>>
  • Dog recovering from gun shots looks for loving home

    Dog recovering from gun shots looks for loving home

    Friday, August 22 2014 5:00 PM EDT2014-08-22 21:00:29 GMT
    SPOKANE, Wash. - Just for a second, forget everything you think you know about Pit Bulls. Forget that you think they are vicious or that you've heard they attack children. Approaching this story with an open mind might just change your opinion of what can actually be a very sweet, people-loving breed. A very special pit bull is lucky to be alive after enduring two gun shot wounds and abuse that left her blind in one eye.>>
    SPOKANE, Wash. - Just for a second, forget everything you think you know about Pit Bulls. Forget that you think they are vicious or that you've heard they attack children. Approaching this story with an open mind might just change your opinion of what can actually be a very sweet, people-loving breed. A very special pit bull is lucky to be alive after enduring two gun shot wounds and abuse that left her blind in one eye.>>
  • National NewsMore>>

  • Ice bucket challenge goes awry, firefighters hurt

    Ice bucket challenge goes awry, firefighters hurt

    Friday, August 22 2014 4:50 PM EDT2014-08-22 20:50:01 GMT
    CAMPBELLSVILLE, Ky. - A charity stunt that has grown into a social media phenomenon went terribly wrong for four Kentucky firefighters who were injured when a fire truck's ladder got too close to a power line after they dumped water on college students who were taking part in an "ice bucket challenge.">>
    CAMPBELLSVILLE, Ky. - A charity stunt that has grown into a social media phenomenon went terribly wrong for four Kentucky firefighters who were injured when a fire truck's ladder got too close to a power line after they dumped water on college students who were taking part in an "ice bucket challenge.">>
  • Investigators: Pentagon broke the law in swap for Sgt. Bergdahl

    Investigators: Pentagon broke the law in swap for Sgt. Bergdahl

    Thursday, August 21 2014 4:08 PM EDT2014-08-21 20:08:21 GMT
    KHQ.COM- Congressional investigators say the Pentagon broke the law when it swapped five Taliban leaders for Idaho native Sgt. Bowe Bergdahl. The nonpartisan Government Accountability Office says the Defense Department's failure to notify the relevant congressional committees at least 30 days in advance of the exchange broke the law.>>
    KHQ.COM- Congressional investigators say the Pentagon broke the law when it swapped five Taliban leaders for Idaho native Sgt. Bowe Bergdahl. The nonpartisan Government Accountability Office says the Defense Department's failure to notify the relevant congressional committees at least 30 days in advance of the exchange broke the law.>>
  • Doctor: No health risk from 2 US Ebola patients

    Doctor: No health risk from 2 US Ebola patients

    Thursday, August 21 2014 1:55 PM EDT2014-08-21 17:55:21 GMT
    ATLANTA - A doctor at the hospital that treated two American aid workers who were infected with the deadly Ebola virus in Africa says their discharge poses no public health risk.>>
    ATLANTA - A doctor at the hospital that treated two American aid workers who were infected with the deadly Ebola virus in Africa says their discharge poses no public health risk. Officials announced the release of Dr. Kent Brantly and Nancy Writebol on Thursday. Brantly left Emory University Hospital on Thursday. Writebol left Tuesday. Family and officials say they're free of the virus. >>