Home Prices Rise Further in August 2013 According to the S&P/Case-Shiller Home Price Indices
NEW YORK, Oct. 29, 2013 /PRNewswire/ — Data through August 2013, released today by S&P Dow Jones Indices for its S&P/Case-Shiller(1) Home Price Indices, the leading measure of U.S. home prices, showed that the 10-City and 20-City Composites increased 12.8% year-over-year. Compared to July 2013, the annual growth rates accelerated for both Composites and 14 cities.
On a monthly basis, the 10-City and 20-City Composites gained 1.3% in August. Las Vegas led the cities with an increase of 2.9%, its highest since August 2004. Detroit and Los Angeles followed with gains of 2.0%.
In August 2013, the 10- and 20-City Composites posted annual increases of 12.8%.
“The 10-City and 20-City Composites posted a 12.8% annual growth rate,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “Both Composites showed their highest annual increases since February 2006. All 20 cities reported positive year-over-year returns. Thirteen cities posted double-digit annual gains. Las Vegas and California continue to impress with year-over-year increases of over 20%. Denver and Phoenix posted 20 consecutive annual increases; Miami and Minneapolis 19. Despite showing 26 consecutive annual gains, Detroit remains the only city below its January 2000 index level.
“The monthly percentage changes for the 20-City composite show the peak rate of gain in home prices was last April. Since then home prices continued to rise, but at a slower pace each month. This month 16 cities reported smaller gains in August compared to July. Recent increases in mortgage rates and fewer mortgage applications are two factors in these shifts.
“Denver and Dallas again set new highs. All the other cities remain below their peaks. Boston and Charlotte are the two MSAs closest to their peaks with only 8-9% left to go. Las Vegas is still down 47.1% from its peak level.”
As of August 2013, average home prices across the United States are back to their mid-2004 levels. Measured from their June/July 2006 peaks, the peak-to-current decline for both Composites is approximately 20-21%. The recovery from the March 2012 lows is 22.1% and 22.7% for the 10-City and 20-City Composites.
All twenty cities posted monthly gains in August, although most cities showed deceleration compared to July. Las Vegas was at the top of the range at +2.9% and Seattle was at the bottom with a return of +0.5%. Month-over-month, San Francisco has been losing momentum as prices increased 4.9% in April 2013 and 0.9% in August 2013.
Fourteen cities showed year-over-year rate acceleration in August versus last month. Las Vegas was the leader with an annual rate of 29.2%, its highest since March 2005. Denver and San Francisco posted their highest growth rates since August 2001 and March 2001, respectively. Although Dallas did not break into double-digit returns, the city posted its highest annual gain since it was first published in January 2000.
More than 26 years of history for these data series are available, and can be accessed in full by going to www.homeprice.spdji.com. Additional content on the housing market may also be found on S&P Dow Jones Indices’ housing blog: www.housingviews.com.
The table below summarizes the results for August 2013. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data.
August 2013 August/July July/June Metropolitan Area Level Change (%) Change (%) 1-Year Change (%) ----------------- ----- --------- --------- ---------------- Atlanta 113.47 1.7% 2.2% 18.4% Boston 168.27 0.7% 1.4% 6.3% Charlotte 125.07 1.0% 0.5% 7.3% Chicago 127.68 1.6% 3.2% 8.7% Cleveland 106.95 0.6% 0.5% 3.7% Dallas 132.30 0.6% 1.3% 9.0% Denver 146.95 0.9% 1.6% 10.1% Detroit 92.54 2.0% 2.7% 16.4% Las Vegas 124.09 2.9% 2.8% 29.2% Los Angeles 210.49 2.0% 2.1% 21.7% Miami 170.41 0.8% 1.2% 13.5% Minneapolis 137.34 1.8% 1.9% 10.2% New York 172.46 1.1% 1.5% 3.6% Phoenix 141.47 1.5% 1.5% 18.6% Portland 159.13 1.2% 1.6% 13.0% San Diego 191.78 1.8% 2.0% 21.5% San Francisco 178.53 0.9% 2.2% 25.4% Seattle 160.36 0.5% 1.9% 13.2% Tampa 153.93 1.8% 2.3% 14.1% Washington 204.44 0.7% 1.4% 6.3% Composite-10 178.75 1.3% 1.9% 12.8% Composite-20 164.53 1.3% 1.8% 12.8% ------------ ------ --- --- ---- Source: S&P Dow Jones Indices and CoreLogic Data through August 2013
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.
August/July July/June Change (%) Change (%) Metropolitan Area NSA SA NSA SA ------------ --- --- --- --- Atlanta 1.7% 1.5% 2.2% 0.9% Boston 0.7% 0.5% 1.4% 0.0% Charlotte 1.0% 0.6% 0.5% 0.0% Chicago 1.6% 0.1% 3.2% 1.0% Cleveland 0.6% 0.1% 0.5% -0.2% Dallas 0.6% 0.8% 1.3% 0.7% Denver 0.9% 0.7% 1.6% 1.0% Detroit 2.0% 0.4% 2.7% 0.4% Las Vegas 2.9% 2.3% 2.8% 2.5% Los Angeles 2.0% 1.7% 2.1% 1.5% Miami 0.8% 0.5% 1.2% -0.2% Minneapolis 1.8% 1.0% 1.9% -0.8% New York 1.1% 0.4% 1.5% 0.1% Phoenix 1.5% 1.3% 1.5% 1.0% Portland 1.2% 1.0% 1.6% 0.5% San Diego 1.8% 1.6% 2.0% 1.5% San Francisco 0.9% 0.9% 2.2% 1.2% Seattle 0.5% 0.7% 1.9% 1.3% Tampa 1.8% 1.5% 2.3% 1.2% Washington 0.7% 0.3% 1.4% 0.2% Composite-10 1.3% 0.9% 1.9% 0.7% Composite-20 1.3% 0.9% 1.8% 0.6% ------------ --- --- --- --- Source: S&P Dow Jones Indices and CoreLogic Data through August 2013
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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.
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