Tuesday, June 26, 2012

It's The Economy Stupid: Housing Surprise

US home prices surprise to the upside

 

The S&P/Case-Shiller Home Price Index rose 0.67% m/m in April, well above our forecast and the consensus (both 0.3%). The March data were also revised significantly higher to show a m/m gain of 0.73% versus the 0.09% initial estimate. The 20-city composite is now down only 1.9% y/y, an improvement from the -2.59% observed in March. 17 of the 20 metropolitan statistical areas (MSAs) posted gains, which is in line with the March release where 16 of the 20 MSAs posted gains. There has been a steady increase in the number of MSAs with monthly price gains this year; only 8 MSAs posted monthly gains in December 2011. Of the 17 MSAs that posted gains in April, Phoenix (2.32%), San Francisco (1.52%), Washington DC (1.44%), and Tampa (1.38%) led the way.

 

Pretty impressive when cities in Arizona, California and Florida are leaders.

 

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“The Fed has gone about as if the problem is a shortage of liquidity.  That is not the basic problem.  The basic problem is uncertainty that the balance sheets of financial firms are credible.”

~ 2009, Anna Schwartz, Economist, 1915-2012

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John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One City Plaza, 7th Floor

Corner of North Blvd & 4th Street

Exit 1B I-110 Convention Street,

Turn Left to get to North Blvd,

Turn Right on North Blvd

 

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