Residential prices increased 1.2% in July, compared to the same month last year, according to the Standard Poor’s/Case Shiller new home price index released Tuesday.
Home values rose in July from June in the 20 cities tracked by the index, marking the third straight month in which prices increased in each one.
David Blitzer, chairman of the SP’s index committee, declared in an interview that, “Overall, housing has come back” but also expressed concern that mortgage lending standards are much too tight.
In an interview on CNBC he said that before the housing crisis banks would lend to just about anyone, adding that, “now it’s gone too far in the other direction.”
Tight underwriting guidelines dictated by Fannie Mae and Freddie Mac (via their regulator) have been a chief complaint of Realtors, home builders, and mortgage bankers.
Still, Blitzer said that housing “is very much back in place,” adding that there are “spot reports of a shortage of inventory” in certain markets.
Among the cities that have improved the most the past year is Phoenix, where home values have increased 16.6% in the past 12 months. Prices in Minneapolis and Detroit have risen more than 6%.
The SP/Case-Shiller index covers about half of U.S. homes.