S&P/Case-Shiller Home Price Indices: Home Prices See Strong Gains in the First Quarter of 2013

  • By David M. Kinchen 
 S&P/Case-Shiller Home Price Indices: Home Prices See Strong Gains in the First Quarter of 2013

 All three composites of S&P/Case-Shiller Home Price Indices  through March 2013, released Tuesday, May 28, 2013   posted double-digit annual increases. The 10-City and 20-City Composites increased by 10.3% and 10.9% in the year to March with the national composite rising by 10.2% in the last four quarters. All 20 cities posted positive year-over-year growth.

In the first quarter of 2013, the national composite rose by 1.2%. On a monthly basis, the 10- and 20-City Composites both posted increases of 1.4%. Charlotte, Los Angeles, Portland, Seattle and Tampa were the five MSAs to record their largest month-over-month gains in over seven years. Nationally, home prices are back to their mid-2003 levels.

“Home prices continued to climb,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “Home prices in all 20 cities posted annual gains for the third month in a row. Twelve of the 20 saw prices rise at double-digit annual growth. The National Index and the 10- and 20-City Composites posted their highest annual returns since 2006.”

“Phoenix again had the largest annual increase at 22.5% followed by San Francisco with 22.2% and Las Vegas with 20.6%” Blitzer added. “Miami and Tampa, the eastern end of the Sunbelt, were softer with annual gains of 10.7% and 11.8%. The weakest annual price gains were seen in New York (+2.6%), Cleveland (+4.8%) and Boston (+6.7%); even these numbers are quite substantial.”

“Other housing market data reported in recent weeks confirm these strong trends: housing starts and permits, sales of new home and existing homes continue to trend higher,”Blitzer said. “At the same time, the larger than usual share of multi-family housing, a large number of homes still in some stage of foreclosure and buying-to-rent by investors suggest that the housing recovery is not complete.”

  As of the first quarter of 2013, average home prices across the United States are back at their mid-2003 levels. At the end of the first quarter of 2013, the National Index was up 1.2% over the fourth quarter of 2012 and 10.2% above the first quarter of 2012.

As of March 2013, average home prices across the United States are back to their late 2003 levels for both the 10-City and 20- City Composites. Measured from their June/July 2006 peaks, the peak-to-current decline for both Composites is approximately 28-29%. The recovery from the March 2012 lows is 10.3% and 10.9% for the 10- and 20- City Composites, respectively.

The number of cities that showed monthly gains increased to 15. Denver, Charlotte, Seattle and Washington entered positive territory; Seattle and Charlotte were the most notable with returns of +3.0% and +2.4%. San Francisco posted the highest month-over-month return of 3.9%.

All 20 cities showed increases on an annual basis for at least three consecutive months. Atlanta, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, Phoenix, Portland, San Diego, San Francisco, Seattle and Tampa all posted double-digit annual returns. Las Vegas, Phoenix and San Francisco were the three MSAs to increase over 20% in March 2013 over March 2012.

On June 25, 2013 the current URL for the S&P/Case Shiller Home Price Indices,www.homeprice.standardandpoors.com will be redirected to www.spdji.com. Associated data files can be found via the Additional Info tab. Please use the following link to view and bookmark the index page:http://www.spdji.com/index-family/real-estate/sp-case-shiller

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