While the gains were modest, all three
major S&P Case-Shiller Home Price Indices ended the second quarter of 2012
with positive annual growth rates for the first time since the summer of 2010. The national composite index was up 1.2
percent in the second quarter compared to the second quarter of 2011 and was
6.9 percent higher than in the first quarter of this year.
The two indices that make up the
national composite - the 10-City and 20-City were up 0.1 percent and 0.5
percent respectively on an annual basis and 2.2 percent and 2.3 percent from
May to June. This was the second
consecutive month that both the 10-City and 20-City indices and all 20 of the
cities posted positive monthly gains. Eighteen
of the 20 metropolitan statistical areas (MSAs) also showed larger month over
month increases in June than they had in May; only in Charlotte and Dallas did
the rate of increase slow. Detroit
recorded the highest monthly increase at 6.0 percent.
Thirteen cities had positive annual
rates. Six, Atlanta, Chicago, Las Vegas,
Los Angeles, New York, and San Diego still had negative annual rates of change
with Atlanta in double digits (-12.1 percent).
The annual rate in Boston was unchanged from one year earlier. Phoenix was the most improved, up 13.9 percent
since June 2011.
David Ml Blizer, Chairman of the Index
Committee at S&P Dow Jones Indices said, "The regions showed positive
results for June. All 20 of the cities
saw average home prices rise in June over May and all were by at least 1.0
percent." Detroit was up the most, +6.0
percent, and Charlotte the least, +1.0 percent.
The Composites showed the same increases as last month - the 10-City rose
by 2.2 percent in June and the 20-City by 2.3 percent. We are aware that we are in the middle of a
seasonal buying period, but the combined positive news coming from both monthly
and annual rates of change in home prices bode well for the housing market."
As of June average home prices for both
the 10- and 20-City Composites are back to their summer 2003 levels. Measured from their June/July 2006 peaks,
both Composites are down approximately 31 percent and both have risen about 6
percent from their recent troughs in March 2012. Atlanta, Detroit, and Las Vegas continued to
have average home prices below their January 2000 levels, the benchmark for the