Home Prices Continue to Increase in November According to the S&P/Case-Shiller Home Price Indices

Jan 26, 2016, 09:35 ET from S&P Dow Jones Indices

NEW YORK, Jan. 26, 2016 /PRNewswire/ -- S&P Dow Jones Indices today released the latest results for the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices. Data released today for November 2015 show that home prices continued their rise across the country over the last 12 months. More than 27 years of history for these data series is available, and can be accessed in full by going to www.homeprice.spdji.com. Additional content on the housing market can also be found on S&P Dow Jones Indices' housing blog: www.housingviews.com.

Year-over-Year
The S&P/Case-Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, recorded a slightly higher year-over-year gain with a 5.3% annual increase in November 2015 versus a 5.1% increase in October 2015. The 10-City Composite increased 5.3% in the year to November compared to 5.0% previously. The 20-City Composite's year-over-year gain was 5.8% versus 5.5% reported in October.

Portland, San Francisco and Denver continue to report the highest year over year gains among the 20 cities with another month of double digit annual price increases. Portland led the way with an 11.1% year-over-year price increase, followed by San Francisco with 11.0% and Denver with a 10.9% increase. Fourteen cities reported greater price increases in the year ending November 2015 versus the year ending October 2015. Phoenix had the longest streak of year-over-year increases, reporting a gain of 5.9% in November 2015, and the twelfth consecutive increase in annual price gains. Detroit posted a 6.3% year-over-year price, up from 5.1%, the largest annual increase this month.

Month-over-Month
Before seasonal adjustment, the National Index posted a gain of 0.1% month-over-month in November. The 10-City Composite was unchanged and the 20-City Composite reported gains of 0.1% month-over-month in November. After seasonal adjustment, the National Index, along with the 10-City and 20-City Composites, all increased 0.9% month-over-month in November. Fourteen of 20 cities reported increases in November before seasonal adjustment; after seasonal adjustment, all 20 cities increased for the month.

Analysis
"Home prices extended their gains, supported by continued low mortgage rates, tight supplies and an improving labor market," says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. "Sales of existing homes were up 6.5% in 2015 vs. 2014, and the number of homes on the market averaged about a 4.8 months' supply during the year; both numbers suggest a seller's market. The consumer portion of the economy is doing well; like housing, automobile sales were quite strong last year. Other parts of the economy are not faring as well. Businesses in the oil and energy sectors are suffering from the 75% drop in oil prices in the last 18 months. Moreover, the strong U.S. dollar is slowing exports. Housing is not large enough to offset all of these weak spots.

"Home prices continue to recover from the collapse that began before the recession of 2007-2009 and continued until 2012. Three cities – Dallas, Denver and Portland OR – have reached new all-time highs; San Francisco is even with its earlier peak and Charlotte NC is less than one percent below its previous peak. The S&P/Case-Shiller National Home Price Index is about 4.8% below the peak it set in July 2006, and 29.2% above the bottom it touched in January 2012. By comparison, the S&P 500 as of Friday, January 22nd is up 46% from January 2012 – better than the S&P/Case-Shiller National Home Price series and about the same as Los Angeles.

Table 1 below summarizes the results for November 2015. The S&P/Case-Shiller Home Price Indices are revised for the prior 24 months, based on the receipt of additional source data.


November 2015

November/October

October/September

1-Year

Metropolitan Area

Level

Change (%)

Change (%)

Change (%)

Atlanta

125.69

-0.3%

-0.2%

5.7%

Boston

183.58

-0.5%

0.0%

4.7%

Charlotte

135.07

0.3%

0.3%

5.3%

Chicago

130.43

-0.7%

-0.8%

2.0%

Cleveland

108.74

0.0%

-0.6%

2.2%

Dallas

156.15

0.2%

0.4%

9.4%

Denver

174.43

0.1%

0.4%

10.9%

Detroit

103.40

0.1%

-0.3%

6.3%

Las Vegas

144.76

-0.1%

0.0%

5.2%

Los Angeles

239.83

0.3%

0.1%

6.2%

Miami

206.68

0.8%

0.6%

8.1%

Minneapolis

147.72

0.1%

-0.1%

4.8%

New York

181.19

-0.3%

-0.1%

3.7%

Phoenix

156.47

0.3%

0.5%

5.9%

Portland

189.47

0.3%

0.5%

11.1%

San Diego

216.30

0.3%

-0.3%

6.0%

San Francisco

218.40

0.3%

0.6%

11.0%

Seattle

186.06

0.5%

0.5%

9.7%

Tampa

174.95

0.5%

0.6%

6.0%

Washington

211.60

0.1%

-0.3%

2.1%

Composite-10

197.54

0.0%

0.0%

5.3%

Composite-20

182.86

0.1%

0.1%

5.8%

U.S. National

175.71

0.1%

0.1%

5.3%

Source: S&P Dow Jones Indices and CoreLogic



Data through November 2015




Table 2 below shows a summary of the monthly changes using the seasonally adjusted (SA) and non-seasonally adjusted (NSA) data. Since its launch in early 2006, the S&P/Case-Shiller Home Price Indices have published, and the markets have followed and reported on, the non-seasonally adjusted data set used in the headline indices. For analytical purposes, S&P Dow Jones Indices publishes a seasonally adjusted data set covered in the headline indices, as well as for the 17 of 20 markets with tiered price indices and the five condo markets that are tracked.


November/October Change (%)

October/September Change (%)

Metropolitan Area

NSA

SA

NSA

SA

Atlanta

-0.3%

1.0%

-0.2%

1.2%

Boston

-0.5%

0.4%

0.0%

1.1%

Charlotte

0.3%

1.4%

0.3%

0.8%

Chicago

-0.7%

1.1%

-0.8%

0.7%

Cleveland

0.0%

0.5%

-0.6%

0.4%

Dallas

0.2%

1.0%

0.4%

1.2%

Denver

0.1%

0.9%

0.4%

1.1%

Detroit

0.1%

1.3%

-0.3%

0.2%

Las Vegas

-0.1%

0.3%

0.0%

0.2%

Los Angeles

0.3%

0.9%

0.1%

0.5%

Miami

0.8%

1.0%

0.6%

1.2%

Minneapolis

0.1%

0.9%

-0.1%

0.6%

New York

-0.3%

0.8%

-0.1%

0.6%

Phoenix

0.3%

0.6%

0.5%

0.6%

Portland

0.3%

1.2%

0.5%

1.1%

San Diego

0.3%

0.7%

-0.3%

0.2%

San Francisco

0.3%

1.2%

0.6%

1.4%

Seattle

0.5%

1.2%

0.5%

1.3%

Tampa

0.5%

1.1%

0.6%

1.3%

Washington

0.1%

0.9%

-0.3%

0.6%

Composite-10

0.0%

0.9%

0.0%

0.7%

Composite-20

0.1%

0.9%

0.1%

0.8%

U.S. National

0.1%

0.9%

0.1%

0.9%

Source: S&P Dow Jones Indices and CoreLogic



Data through November 2015




For more information about S&P Dow Jones Indices, please visit www.spdji.com.

About S&P Dow Jones Indices
S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of investors. More assets are invested in products based upon our indices than any other provider in the world. With over 1,000,000 indices covering a wide range of asset classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.

S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("S&P"), a part of McGraw Hill Financial. Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.

SOURCE S&P Dow Jones Indices



RELATED LINKS

http://www.spdji.com