Seven US cities where home prices are soaring

USA Today reports seven cities where home prices are soaring, based on a monthly study by S&P/Case-Shiller. The S&P/Case-Shiller home price index is “one of the most widely followed measures of home price changes.” The Case-Shiller studies 20 major cities monthly to track price changes.

The Case-Shiller index reported that Detroit, coming in at number 3, has soaring home prices. Detroit was ranked higher than Los Angeles, Miami, Minneapolis, and Las Vegas. Case-Shiller reports a 13.6% increase in home prices in 2012. Foreclosure sales have also dropped 19% in one year, which indicates a tighter inventory (less availability of houses for sale) and more non-foreclosure sales. Appreciation of housing can be attributed to improving economical conditions.