Salient to Investors:
Home prices are beginning to rise in cities that appeal to younger and affluent buyers.
Professor Robert Shiller at Yale said speculative fervor comes back, sees signs of strength, though surveys of home buyers show a continued lowering of expectations on prices.
Chris Rupkey at Bank of Tokyo-Mitsubishi UFJ said glamour cities have always been on the East Coast and West Coast.
Brad Hunter at Metrostudy said the glamor markets are drawing the most demand, pushing prices up – they are 24-hour, international gateway cities, do business worldwide and attract demand from global buyers, such as the Brazilians who’ve been buying in Miami.
San Francisco prices are being driven up by the soaring technology industry.
Mark Vitner at Wells Fargo said cities with large numbers of upper-income households are faring best in the bifurcated economy.
Patrick Newport at IHS Global Insight said it is too soon to forecast where home prices are heading, given the number of delinquent homeowners and Case-Shiller indices that hit cyclical lows in March.