Along with the usual monthly data,
S&P/Case Shiller Home Price Indices released this morning also included data
for all of 2012. The indices, a measure
of U.S. home prices ended the year with strong gain with the national composite
index up 7.3 percent for the year and the 10-City and 20-City Indices posting
increases of 5.9 percent and 6.8 percent respectively.
On a month-over-month basis both the 10-
and the 20- City Indices gained 0.2 percent, reversing the 0.2 percent loss in
the 10-City data in November and the 0.1 loss for the 20-City Index.
Nineteen of the 20 cities tracked by
Case-Shiller posted positive year-over-year growth ranging from 2.2 percent in
Chicago to 23.0 percent in Phoenix.
Other strong showings were seen in Minneapolis (12.2 percent), Las Vegas
(12.9 percent), Detroit (13.6 percent), and San Francisco (14.4 percent). The only exception to the increases, New York,
was down 0.5 percent.
In December nine MSAs posted positive
monthly gains and 11 declined. The
largest increase, 1.8 percent, was in Las Vegas; the largest negative number
was -0.7 percent for Chicago.
David M. Blitzer, Chairman of the Index
Committee at S&P Dow Jones said "Home prices ended 2012 with solid
gains. Housing and residential
construction led the economy in the 2012 fourth quarter. The National Composite increased 7.3 percent
over the four quarters of 2012. From its
low in the first quarter, it surged in the second and third quarter and slipped
slightly in the 2012 fourth period. The
10- and 20-City Composites, which bottomed out in March 2012 continued to show
both year-over-year and monthly gains in December. These movements, combined with other housing
data, suggest that while housing is on the upswing some of the strongest
numbers may have already been seen."
As of December average home prices
across the U.S. for the 10-City and 20-City Indices are back to their autumn
2003 levels. Measured from the June/July
2006 peaks both indices are down 30 percent but both are approximately 8.9
percent above their recent lows of March 2012.
The Case-Shiller indices have a base
value of 100 set in January 2000. Thus,
for example, a current index value of 150 translates to a 50 percent
appreciation since that date for a typical home within the subject market. Only Atlanta and Detroit remain below their
index values for January 2000 with Atlanta having a current index value of
95.95 and Detroit 80.04. The National
Composite Index was at 135.22 at the end of December, the 10-City was 158.49
and the 20-City was 145.95.