Us house prices climb back to 2004 levels
New York, July 30, 2013 /PRNewswire/ -- Data through May 2013, released today by S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, showed increases of 2.5 per cent and 2.4 per cent for the 10- and 20-City Composites in May versus April. Dallas and Denver reached record levels surpassing their pre-financial crisis peaks set in June 2007 and August 2006. This is the first time any city has made a new all-time high.
The 10- and 20-City Composites annual returns rose slightly from April to May as they posted the best year-over-year gains since March 2006. All 20 cities increased from May 2012 to May 2013 and from April 2013 to May 2013.
In May 2013, the 10- and 20-City Composites posted annual increases of 11.8 per cent and 12.2 per cent, respectively.
"Home prices continue to strengthen," says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. "Two cities set new highs, surpassing their pre-crisis levels and five cities – Atlanta, Chicago, San Diego, San Francisco and Seattle – posted monthly gains of over three percent, also a first time event.
"The Southwest and the West saw the strongest year-over-year gains as San Francisco home prices rose 24.5 per cent followed by Las Vegas (+23.3 per cent) and Phoenix (+20.6 per cent). New York (+3.3 per cent), Cleveland (+3.4 per cent) and Washington DC (+6.5 per cent) were the weakest. Monthly numbers before seasonal adjustment showed all 20 cities experienced rising prices. San Francisco (+4.3 per cent), Chicago (+3.7 per cent) and Atlanta (+3.4 per cent) were the leaders. However, two cities – Cleveland and Minneapolis were down slightly after seasonal adjustment.
"The overall report points to some shifts among various markets: Washington DC is no longer the standout leader and the Eastern Sunbelt cities, Miami and Tampa, are lagging behind their western counterparts."
As of May 2013, average home prices across the United States are back to their spring 2004 levels. Measured from their June/July 2006 peaks, the peak-to-current decline for both Composites is approximately 24-25 per cent. The recovery from the March 2012 lows is 15.9 per cent and 16.5 per cent for the 10-City and 20-City Composites.
All 20 cities showed positive monthly returns for May. Ten cities – Chicago, Denver, Detroit, Las Vegas, Miami, New York, Phoenix, Portland, Seattle and Tampa – showed acceleration. Chicago posted an impressive monthly rate of 3.7 per cent in May; it was higher than in April by one percentage point. Miami and Seattle had their largest monthly gains since August 2005 and April 1990, respectively.
On an annual basis, all cities showed gains ranging from 3.3 per cent to 24.5 per cent. Twelve MSAs – Atlanta, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, Phoenix, Portland, San Diego, San Francisco, Seattle and Tampa – posted double-digit growth. Atlanta, Las Vegas, Phoenix and San Francisco were the four cities to post annual increases of over 20 per cent. Las Vegas and San Francisco accelerated as measured by their May versus April year-over-year returns. Although Atlanta and Phoenix continue to post impressive gains, their May annual rate decreased to just over 20 per cent compared to April. Detroit showed the most deceleration with a three percentage point decline.
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 May 2013. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source 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.
A summary of the monthly changes using the seasonally adjusted (SA) and non-seasonally adjusted (NSA) data can be found in the table below.