Monday, August 16, 2010

Housing prices fall 0.1 percent in West, including Colorado

The overall CPI in the United States fell 0.3 percent from June to July this year, and has increased 1.2 percent over the last 12 months.

For the 12 month period ending in July, consumer prices for gasoline rose 7.4 percent, while energy prices overall rose 5.2 percent.

Prices for shelter increased 0.1 percent from June to July of this year, and have fallen 0.7 percent over the last 12 months.

Year over year, medical care prices increased 3.2 percent.

Overall growth in prices, including shelter, continues to be muted by a lack of job growth and wage growth. Significant increases in deficit spending have substantially increased the money supply in the United States, but these increases have yet to manifest themselves in notable devaluation of the dollar. This is likely due to weak activity in lending, lack of consumer spending due to job fears and banks holding large portions of the recently-produced currency in reserves.

The the "West" region of the United States, which includes Colorado, consumer prices rose 0.1 percent from June to July, and rose 0.8 percent year over year from July 2009 to July 2010.

According to the Mountain-Plains CPI Blue Card, Housing prices in the West rose 0.1 percent from June to July, and they fell 1.3 percent year over year for July.

The largest year-over-year increases were found in medical care and transportation which increased 3.4 percent and 5.6 percent, respectively.

The largest drops were in housing and apparel, which fell 1.3 percent and 0.1 percent, respectively.

States like California and Arizona, which have been heavily impacted by large numbers of foreclosures, are included in the West, and have impacted overall housing costs as reflected in the regional CPI. Region-wide however, the notable drop of 1.3 percent also reflects generally stable home prices and very stable or falling rent levels, in many areas.