Originally published September 23 2005
Housing prices climb at quickest pace in 25 years
by Mike Adams, the Health Ranger, NaturalNews Editor
Government economists say that, from the second quarter of 2004 through the second quarter of 2005, U.S. home prices are increasing at the fastest rate in 25 years, and USA Today reports that this unsustainable trend has no peak in sight.
The Office of Federal Housing and Enterprise Oversight said prices rose 13.4% in the 12 months ended in June, the fastest rate since 1979.
Appreciation was 3.2% from April to June 2005, 12.8% on an annual basis.
Prices have risen more than 53% in the past five years.
Nevada led the nation for the year, at 28.1% growth.
But Las Vegas, for the first time since late 2003, was not on the list of the 20 hottest cities for the quarter.
Prices zoomed in Arizona, rising 9.7% in the second quarter --- the most rapid pace of any state.
"There is no evidence here of prices topping out," said OFHEO chief economist Patrick Lawler.
Change from year ago Naples-Marco Island, Fla.
The U.S. housing market has been setting records for most of the past five years, with prices rising far faster than inflation and incomes.
There were some tentative signs that the housing market was starting to peak in late summer, after the OFHEO survey period.
Existing home sales declined 2.6% in July from the previous month, though new home sales surged to a record.
Mortgage giant Freddie Mac said the interest rate on a 30-year fixed-rate mortgage averaged 5.71% in the week ended Thursday, down from 5.77% the previous week.
Mortgage rates are lower than a year ago, even though the Fed has been raising short-term rates.
Interest rates on 10-year notes, falling before Katrina rolled through, dropped on concerns about the storm's impact on the economy.
but with rates coming down, it's stretching out the peak," says David Lereah, National Association of Realtors' economist.
Dave Seiders, chief economist of the National Association of Home Builders, also calls the price increases unsustainable and predicts they would start "quietly winding down."
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