Home price spikes are seasonal, not the norm
Researchers with Capital Economics say no one should interpret recent home price increases to anything but a temporary uptick caused by better weather and seasonal factors. A new report from Altos Research earlier this week showed the median national home price for all 26 markets studied by the firm at $450,358 in June, compared to $444,273 in May. In addition, the latest Standard & Poor's/Case-Shiller 10-city composite went up 0.8% in April when compared to March, while the 20-city index grew 0.7%. "The recent rises in house prices are nothing more than the normal seasonal uplift triggered by the better weather and the end of the school year," Capital Economics wrote in its latest report. Even still, Capital Economics noted one positive trend: seasonally adjusted prices are falling at a slower rate with distressed home sales making up a smaller percentage of total sales. "We think prices will continue to edge lower," Capital Economics wrote. "But even if a floor is soon found, with demand still constrained by the high unemployment rate and the difficulties of securing a loan, house prices are unlikely to rise consistently for a couple of years yet." Write to Kerri Panchuk.