continued good news about home prices from the S&P/Case-Shiller Home Price
Indices today. Both the 10-City and the
20-City Composites increased 0.9 percent in August compared to the previous
month. Nineteen of the 20 cities also
increased month-over-month. The August
10-City Index number was 158.62 and the 20-City was 145.87 compared to 157.25
and 144.60 in July.
increase for the 10-City index was 1.3 percent and the 20-City was up 2.0
percent and these increases were larger than those posted in July which were
0.6 percent and 1.2 percent respectively.
The respective index numbers in August 2011 were 156.51 and 142.97. Seventeen of the 20 cities posted positive
sole metropolitan area posting a negative monthly number was down 0.1 percent
from August while the three cities with negative annual returns were Atlanta
which fell 6.1 percent from a year earlier; New York was down 2.3 percent and
Chicago 1.6 percent. Phoenix was the
most improved among the 20 cities with an annual increase of 18.8 percent.
Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices said that
the positive return for Phoenix was its fourth consecutive month with annual
increases in the double-digits and that even Atlanta's loss was a significant
improvement compared to the nine consecutive months of double-digit declines it
posted from October 2011 through this past June. Blitzer noted that the annual rate in Las
Vegas also finally moved to positive territory with an increase of 0.9 percent
in August, the first increase since January 2007.
"The sustained good news in
prices over the past
five months makes us optimistic for continued
recovery in the housing market,"
He continued, "News on home prices
confirms other good news about housing. Single
family housing starts are 43% ahead of
last year's pace, existing
and new home
sales are also up, the inventory of homes
for sale continues to drop and
consumer mortgage default rates are reaching new lows. Further consumer
to rise. Even
as we end the seasonally strong home buying period, the statistics are positive.
For the fifth time in a row, both Composites had monthly gains. Home prices in
Seattle fell modestly in August, but other
that the 20 cities
have also seen home prices generally
improve since April."
The above chart shows the index levels for the 10-City and 20-City Composite Indices. As of
August 2012, average home prices across the United States are back to their summer/autumn 2003 levels for both
composites. Measured from their June/July 2006 peaks, the decline for both
approximately 30% through August 2012 and approximately 35% from the June/July 2006
peak values. The August 2012 levels for both Composites are about 8.5% above their recent early 2012 lows.
The S&P/Case-Shiller Composite of 10 Home Price Index is a value-weighted
average of the 10 original metro area indices.
The S&P/Case-Shiller Composite of 20 Home Price Index is a value-weighted
average of the 20 metro area indices. The indices have a base value of 100 in January
2000; thus, for example, a current index value of 150 translates to a 50% appreciation rate since
January 2000 for a typical home located within
the subject market.