WASHINGTON >> U.S. home prices climbed higher in June with gains that are eclipsing income growth — creating affordability pressures for would-be buyers.
The Standard & Poor’s CoreLogic Case-Shiller 20-city home price index rose 5.7 percent in June, according to a Tuesday report. The separate national average rose as well, putting it 4.3 points above its housing bubble-era peak in July 2006. (Honolulu is not included in the index.)
The price increases are different from the bubble period, when subprime mortgages led to a housing bust. There is a shortage of properties for sale, causing prices to steadily rise at more than double the pace of average hourly earnings. Cheaper borrowing costs have kept buyer demand strong despite the price increases.
Prices are likely to keep rising, said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.
“Given current economic conditions and the tight housing market, an immediate reversal in home price trends appears unlikely,” Blitzer said.
The largest price gain over the past year occurred in the Seattle metro area with a 13.4 percent increase.
Consumer confidence improves in August
WASHINGTON >> American consumers give today’s economy the highest grade in more than 16 years.
The Conference Board said Tuesday that consumers’ assessment of current economic conditions hit the highest level this month since July 2001. The business research group’s overall consumer confidence index, which takes into account Americans’ views of current conditions and their expectations for the next six months, rose to 122.9 in August from 120 in July.
Americans’ spirits have been lifted by a healthy job market. Employers added a robust 209,000 jobs in July, and the unemployment rate has dropped to a 16-year low of 4.3 percent.
The Conference Board found that 34.5 percent of respondents described business conditions as “good” — the highest percentage since January 2001.
LAX eases rules for Uber, Lyft drivers
LOS ANGELES >> Uber and Lyft drivers can now start new rides immediately after dropping off passengers at Los Angeles International Airport.
The practice had been prohibited by ride-hailing services at LAX. Previously, drivers ending rides had to leave the airport before entering again to pick up new customers.
LAX officials said Monday that Uber and Lyft had successfully tested new technology called Rematch, which can alert drivers who are dropping off passengers that another is ready to be picked up.
ON THE MOVE
Rehabilitation Hospital of the Pacific has announced the promotion and hiring of three employees:
>> Shelby McDonald is the new director of compliance, chief compliance officer. McDonald previously served as director of inpatient therapy services at Rehab.
>> Lori Yoshioka is the hospital’s new human resources director. Yoshioka was previously a client services manager at Kamehameha Schools and held positions with Hawaii State Federal Credit Union, Roberts Hawaii and Hawaiian Airlines.
>> Taylor Ayers is the new director of facilities and safety officer. Ayers was previously a graduate consultant at ESRI Inc. as well as a facilities director at Avista Senior Living in Mesa, Ariz.
Central Pacific Bank has promoted Jaysen Kim to vice president and commercial real estate officer from assistant vice president and commercial real estate officer. Prior to joining the bank, Kim served as a senior analyst for Bank of Hawaii.
