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S&P Managing Director and Index Committee Chairman David Blitzer gives his predictions on home sales and prices in 2013.
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Home prices ended 2012 -- solid gains the S&P Case Shiller Index rose in December by most in more than six years.
Next guest though says some of the strongest numbers -- -- to be behind us.
Joining us -- S&P index committee chairman David Blitzer -- actually helps compile and analyze the Case Shiller Index -- see you -- all these numbers together -- What's your take away.
I take away first of all we ended last year on a fantastically good note the national index up seven point 3% over the four quarters of the year.
-- Citi twenty city composites almost that well very good numbers.
Looking across the twenty cities nineteen of the twenty were up in the twelve months ended with decent but.
So we we doing very nicely -- like Jimi Karen these numbers forward them.
What get a carry them forward but I think in any Perry we in a market recovery.
It begins to little bit shaky and then it surges and -- 78% gain in home prices -- pretty good.
Eventually the rate of gains close down and.
Maybe not tomorrow maybe not next week but sometime in the next couple years the rating enhances go down.
In what you want to repeat 20052006.
We are voting against that -- with Cuba we are sorry to see a little bit -- aren't we banks kind of losing -- and it's a little to get some money out to the market.
May -- so although in the last week's minutes fund that -- Federal Reserve.
Open market committee they specifically commented on housing and banks -- still be a little bit.
Tight with a -- even though they weren't charge you much for -- negativity of.
You mentioned that nineteen of the twenty cities are up the one CAD down is here in New York is it because New York started a little later we it was cut we're currently to the party here want.
It I think is a large element of that and we look across all twenty cities in -- fact.
Look across the big boom bust you know -- half a decade back.
They definitely is there a pattern where you know if you made more insidious topic the other match the starting -- -- Michael pretty similar.
But the starting date so much ups is a little bit late to the party we have a different element here though to -- you an -- just talk about how.
Manhattan really reliant on the bonuses from the financial industry and that not come in as passengers as the east -- It it's.
More than just -- -- -- -- New York metro area -- heavily dependent -- financial services.
I'll washing his heavy depended on Uncle Sam Detroit unfortunately for them is heavily dependent on -- and so on and so -- Financial services.
For it was having some some rough moments here and there.
Second a -- compared to a lot of other industries a much higher portion of that somebody total compensation.
Comes in a bonus right so.
That compensations likely to bounce around be a little bit more volatile and more -- certain.
And all of that in difficult times what we see you know last year -- Makes people little bit hesitant.
And that's may be dampening some of the housing boom so quickly predict 2013 -- -- are we off to the races are we gonna pull back a little bit.
2013.
And that we go in with a whole lot of momentum on a national basis.
Home prices it the year ended last year very solidly would look at housing starts -- that existing home sales new home sales.
The builder sentiment consumer sentiment which stayed up big jump upward today at all those numbers -- very good and that says.
-- housing recovery is for real and it's gonna make a big contribution to the economy and and the I'd be reasonably optimistic that's -- David Blitzer S&P.
