Home Prices Increase Again in July 2012 According to the S&P/Case-Shiller Home Price Indices
NEW YORK, Sept. 25, 2012 /PRNewswire/ -- Data through July 2012, released today by S&P Dow Jones Indices for its S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, showed average home prices increased by 1.5% for the 10-City Composite and by 1.6% for the 20-City Composite in July versus June 2012. For the third consecutive month, all 20 cities and both Composites recorded positive monthly changes. It would have been a fourth had prices not fallen by 0.6% in Detroit back in April.
The 10- and 20-City Composites posted annual returns of +0.6% and +1.2% in July 2012, up from their unchanged and +0.6% annual rates posted for June 2012. Fifteen of the 20 MSAs and both Composites posted better annual returns in July as compared to June 2012. Dallas and Washington D.C. saw no change in their annual rates; and Cleveland, Detroit and New York saw their rates worsen in July, with respective returns of +0.4%, +6.2% and -2.6%. After nine consecutive months of double digit annual declines, Atlanta finally improved to a -9.9% annual rate in July 2012, but still the worst among the 20 cities followed by S&P Dow Jones Indices.
In July 2012, the 10- and 20-City Composites posted annual increases of 0.6% and 1.2%, and were up 1.5% and 1.6% for the month, respectively.
"Home prices increased again in July," says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. "All 20 cities and both Composites were up on the month for the third time in a row. Even better, 16 of the 20 cities and both Composites rose over the last year. Atlanta remains the weakest city but managed to cut the annual loss to just under 10%.
"Digging into the numbers, 15 cities and both Composites had stronger annual returns in July's report. New York was the only city with a worse 12-month decline in July than June. Dallas and Washington D.C. saw no change in their annual rates. Cleveland and Detroit saw annual rates decelerate in July versus June, although they remain positive for both cities.
"The news on home prices in this report confirm recent good news about housing. Single family housing starts are well ahead of last year's pace, existing home sales are up, the inventory of homes for sale is down and foreclosure activity is slowing. All in all, we are more optimistic about housing. Upbeat trends continue. For the third time in a row, all 20 cities and both Composites had monthly gains. Stronger housing numbers are a positive factor for other measures including consumer confidence.
"Among the cities, Miami and Phoenix are both well off their bottoms with positive monthly gains since the end of 2011. Many of the markets we follow have seen some decent recovery from their respective lows – San Francisco up 20.4%, Detroit up 19.7%, Phoenix up 17.0% and Minneapolis up 16.5%, to name the top few. These were some of the markets that were hit the hardest when the housing bubble burst in 2006. The 10-City has increased 7.4% and the 20-City 7.8% since their recent lows. The positive news in both the monthly and annual rates of change in home prices over the past few months signals a possible recovery in the housing market."
As of July 2012, average home prices across the United States are back to their summer 2003 levels for the 20-City Composite and to autumn 2003 levels for the 10-City Composite. Measured from their June/July 2006 peaks, the decline for both Composites is approximately 30% through July 2012. For both Composites, their July 2012 levels are approximately 7.5-8.0% above their recent early 2012 lows.
In July 2012, all 20 MSAs and both Composites posted positive monthly gains. Fifteen of the MSAs and both Composites were up 1.0% or more. Miami, with a +2.1% monthly change, was the only city to record a higher monthly gain in July versus June. San Diego had a 1.1% monthly increase in July which is the same as its June gain. The remaining 18 cities and two Composites had lower monthly returns in July versus June, albeit all positive.
Atlanta, Detroit and Las Vegas continued to post average home prices below their January 2000 levels. Cleveland had finally moved past its January 2000 base level with last month's June report and continued posting increasing levels with a +102.02 print in July.
The table below summarizes the results for July 2012. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data. More than 25 years of history for these data series is available, and can be accessed in full by going to www.homeprice.standardandpoors.com.
| July 2012 |
July/June |
June/May |
||
| Metropolitan Area |
Level |
Change (%) |
Change (%) |
1-Year Change (%) |
| Atlanta |
94.15 |
2.6% |
4.4% |
-9.9% |
| Boston |
157.22 |
1.8% |
2.5% |
0.9% |
| Charlotte |
116.08 |
0.9% |
1.5% |
2.2% |
| Chicago |
116.70 |
2.7% |
4.6% |
-0.9% |
| Cleveland |
102.02 |
0.4% |
2.2% |
0.4% |
| Dallas |
121.20 |
0.9% |
1.3% |
3.7% |
| Denver |
132.79 |
1.3% |
2.0% |
5.4% |
| Detroit |
77.16 |
3.3% |
5.4% |
6.2% |
| Las Vegas |
94.57 |
0.7% |
1.5% |
-1.0% |
| Los Angeles |
170.81 |
1.3% |
1.7% |
0.4% |
| Miami |
148.70 |
2.1% |
1.6% |
5.3% |
| Minneapolis |
123.17 |
3.7% |
4.7% |
6.4% |
| New York |
165.23 |
1.2% |
1.9% |
-2.6% |
| Phoenix |
117.22 |
2.2% |
2.5% |
16.6% |
| Portland |
140.12 |
1.2% |
2.5% |
3.2% |
| San Diego |
156.48 |
1.1% |
1.1% |
0.8% |
| San Francisco |
141.71 |
1.9% |
2.8% |
4.8% |
| Seattle |
141.78 |
1.4% |
1.8% |
3.1% |
| Tampa |
134.12 |
0.9% |
2.0% |
3.6% |
| Washington |
192.12 |
1.5% |
1.8% |
3.7% |
| Composite-10 |
157.30 |
1.5% |
2.1% |
0.6% |
| Composite-20 |
144.61 |
1.6% |
2.3% |
1.2% |
| Source: S&P Dow Jones Indices and Fiserv |
||||
| Data through July 2012 |
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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.
A summary of the monthly changes using the seasonally adjusted (SA) and non-seasonally adjusted (NSA) data can be found in the table below.
| July/June Change (%) |
June/May Change (%) |
|||
| Metropolitan Area |
NSA |
SA |
NSA |
SA |
| Atlanta |
2.6% |
1.1% |
4.4% |
2.5% |
| Boston |
1.8% |
0.7% |
2.5% |
0.6% |
| Charlotte |
0.9% |
0.5% |
1.5% |
0.4% |
| Chicago |
2.7% |
0.8% |
4.6% |
1.6% |
| Cleveland |
0.4% |
-0.4% |
2.2% |
0.3% |
| Dallas |
0.9% |
0.1% |
1.3% |
-0.1% |
| Denver |
1.3% |
0.8% |
2.0% |
0.4% |
| Detroit |
3.3% |
1.4% |
5.4% |
2.5% |
| Las Vegas |
0.7% |
0.5% |
1.5% |
1.1% |
| Los Angeles |
1.3% |
0.5% |
1.7% |
1.0% |
| Miami |
2.1% |
0.6% |
1.6% |
0.7% |
| Minneapolis |
3.7% |
0.8% |
4.7% |
1.1% |
| New York |
1.2% |
0.0% |
1.9% |
0.6% |
| Phoenix |
2.2% |
1.4% |
2.5% |
1.5% |
| Portland |
1.2% |
0.3% |
2.5% |
1.7% |
| San Diego |
1.1% |
0.1% |
1.1% |
0.4% |
| San Francisco |
1.9% |
0.9% |
2.8% |
1.7% |
| Seattle |
1.4% |
0.8% |
1.8% |
0.9% |
| Tampa |
0.9% |
0.1% |
2.0% |
0.7% |
| Washington |
1.5% |
0.5% |
1.8% |
0.4% |
| Composite-10 |
1.5% |
0.4% |
2.1% |
0.9% |
| Composite-20 |
1.6% |
0.4% |
2.3% |
0.9% |
| Source: S&P Dow Jones Indices and Fiserv |
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| Data through July 2012 |
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About S&P Dow Jones Indices
S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies 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(SM), S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of institutional and retail investors. More assets are invested in products based upon our indices than any other provider in the world. With over 830,000 indices covering a wide range of assets 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.
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S&P Dow Jones Indices has introduced a new blog called HousingViews.com. This interactive blog delivers real-time commentary and analysis from across the Standard & Poor's organization on a wide-range of topics impacting residential home prices, homebuilding and mortgage financing in the United States. Readers and viewers can visit the blog at www.housingviews.com, where feedback and commentary is certainly welcomed and encouraged.
The S&P/Case-Shiller Home Price Indices are published on the last Tuesday of each month at 9:00 am ET. They are constructed to accurately track the price path of typical single-family homes located in each metropolitan area provided. Each index combines matched price pairs for thousands of individual houses from the available universe of arms-length sales data. The S&P/Case-Shiller National U.S. Home Price Index tracks the value of single-family housing within the United States. The index is a composite of single-family home price indices for the nine U.S. Census divisions and is calculated quarterly. 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.
These indices are generated and published under agreements between S&P Dow Jones Indices and Fiserv, Inc.
The S&P/Case-Shiller Home Price Indices are produced by Fiserv, Inc. In addition to the S&P/Case-Shiller Home Price Indices, Fiserv also offers home price index sets covering thousands of zip codes, counties, metro areas, and state markets. The indices, published by S&P Dow Jones Indices, represent just a small subset of the broader data available through Fiserv.
For more information about S&P Dow Jones Indices, please visit www.spindices.com.
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SOURCE S&P Dow Jones Indices
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