Home prices extended their run of
increases to six months in September with a 2.1 percent bump in the S&P/Case
Shiller 10-City Index and a +3.0 percent change in the 20-City Index. During the third quarter the Composite Index
rose 2.2 percent from the second quarter and 3.6 percent from the third quarter
of 2011. Average home prices across both the 10-City and 20-City indices
increased 0.3 percent in September and 17 of the 20 MSAs posted better annual
returns in September than they did in August.
David M. Blitzer, Chairman of the
S&P Index Committee said, "Home prices rose in the third quarter, marking
the sixth consecutive month of increasing prices. In September's report all three headline
composites and 17 of the 20 cities gained over their levels of a year ago. Month-over-month, 13 cities and both
Composites posted positive monthly gains."
Blitzer said the September figures
marked the beginning of the seasonally weak part of the year and the figures,
which are not seasonally adjusted, showed five cities with lower prices in September
versus only one in August, however seasonally adjusted figures reversed the
pattern and only one city lost ground in September compared to two in
August. This shows that, despite the
season, housing continues to improve.
Phoenix was the city with the greatest
price improvement, up 20.4 percent on an annual basis. Atlanta finally saw a slight increase of 0.1
percent to end 26 straight months of annual price declines. Chicago and New York were the only two cities
to post negative annual numbers, down 1.5 percent and 2.3 percent respectively. They also declined 0.6 percent and 0.1
percent on a monthly basis.
"Thirteen of the 20 cities recorded
positive monthly returns," Blitzer said.
Boston, Charlotte, Chicago, Cleveland, and New York saw modest drops in
home prices in September as compared to August.
Tampa and Washington DC were flat.
With six months of consistently rising home prices, it is safe to say we
are now in the midst of a recovery in the housing market."
As of September average home prices
across the U.S. as gauged by both the 10-City and 20-City indices have returned
to autumn 2003 levels. Measured from
their June/July 2006 peaks both indices are down approximately 29 percent and each
has now risen about 9 percent above the recent lows posted in March 2012.
The Case-Shiller indices track home
prices on a scale with a base of 100 representing home prices in January 2000
for a typical home located within the subject market. Only three cities, Atlanta, Detroit, and Las
Vegas remain below the index base with Detroit, despite a 7.6 annual increase,
having a level of 79.82.