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U.S. home prices are high and are still rising, but the price picture looks a bit different when consumer buying power is brought into the equation. First American Financial Corporation's inaugural Real House Price Index, provides a new take on the way the industry view home prices.
The report said that real house prices are significantly lower than they were prior to the housing boom. After adjusting for increased consumer house-buying power, real house prices are 39 point 1 percent under their housing-boom peak in July 2006 and 18 percent below the level of prices in January 2000.
The Bureau of Economic Analysis reported an upward revision to the first quarter estimate of the gross domestic product, which some industry experts believe will not only signal better growth in the second quarter, but also motivate the Fed to raise rates. The Bureau of Economic Analysis reported GDP growth at annual rate of 0 point 8 percent for the second estimate, still down from Q4’s GDP growth rate of 1 point 4 percent.
