S&P Case Shiller Home Prices Rose 9 Percent in July
Home prices rose for the fourth straight month according tornthe S&P/Case-Shiller Home Price Indices for July which were releasedrnTuesday. While the publishers cautionedrnthat the increases could be merely a sign of seasonal strength, news that bothrnthe 10- and the 20-City Composites were up 9 percent from June was receivingrnheadline treatment on cable news stations following the release. The increases were felt nationally with 17 ofrnthe 20 MSAs also posting monthly upticks. The 10-City Index is now at 156.23rnand the 20-City at 142.77.</p
S&P advises using their non-seasonally adjusted figures;rnhowever it does provide seasonally adjusted data and on that basis the 10-Cityrnwas down 0.1 percent from June and the 20-City was unchanged.</p
Even with the July jump both composites and 18 of the MSA’srnstill posted figures lower than one year ago. rnAnnual returns for the 10- and 20-City Composites were -3.7 percent andrn-4.1 percent respectively. Only Detroitrnand Washington DC posted positive annual returns (1.2 and 0.3 percent), but 14rnMSAs had improved returns compared to those in June. </p
Home prices across the United States are 31 percent belowrnthe June/July 2006 peak for the 10-City index and 30.9 percent below the peakrnfor the 20-City. The former hit its lowestrnlevel in April, 2009 while the 20-City did not bottom out until March 2011. The July increase brings the indices back tornthe levels they enjoyed in the summer of 2003.</p
The three cities that did not post positive monthly changesrnwere Denver which was unchanged, Las Vegas, down 0.2 percent, and Phoenix downrn0.1 percent. This month figuresrnestablished a new low for beleaguered Las Vegas; its current index of 95.48 is 59.3rnpercent below its August 2006 peak. OnlyrnLas Vegas and Detroit (72.04) remain below the baseline number of 100rnrepresenting a typical home in the subject market in January 2000. The city with the highest number isrnWashington, DC at 187.79 followed by Los angles at 170.05.<br /
David M. Blitzer, Chairman of the Index Committee at S&PrnIndices said of the new information, “With July’s data we are seeing not onlyrnanticipated monthly increases, but some fairly broad improvement in the annualrnrates of change in home prices. This isrnstill a seasonal period of stronger demand for houses, so monthly price increasesrnare expected and were seen in 17 of the 20 cities.</p
“While we have now seen four consecutive months of generallyrnincreasing prices, we do know that we are still far from a sustainedrnrecovery. Continued increases in homernprices through the end of the year and better annual results must materializernbefore we can confirm a housing market recovery.”
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