Case-Shiller Indices Show Solid Home Price Gains
The Standard & Poor’s/Case-Shiller U.S. National Home Price Index recorded a slightly higher year-over-year gain, showing a 4.9 percent annual increase in September compared to 4.6 percent increase in August.
The 10-City Composite increased by 5.0 percent year over year through September compared to 4.7 percent previously. The 20-City Composite year-over-year gain improved to 5.5 percent versus 5.1 percent in August. San Francisco, Denver and Portland, Ore., reported the highest year-over-year gains among the 20 cities with double-digit price increases of 11.2 percent, 10.9 percent and 10.1 percent, respectively.
Month over month, the National Index posted an 0.2 percent gain in September. The 10-City Composite and 20-City Composite both reported gains of 0.2 percent; after seasonal adjustment, the National Index posted a gain of 0.8 percent, while the 10-City and 20-City Composites both increased by 0.6 percent month-over-month.
The report said 15 of 20 cities reported increases in September before seasonal adjustment; after seasonal adjustment, 19 cities increased for the month.
“Home prices and housing continue to show strength with home prices rising at more than double the rate of inflation,” said David Blitzer, managing director and chairman of the Index Committee with S&P Dow Jones Indices. “The general economy appeared to slow slightly earlier in the fall, but is now showing renewed strength.”
“September’s larger-than-expected price gains follow several months where price appreciation moderated,” said Mark Vitner, senior economist with Wells Fargo Securities, Charlotte, N.C. “With inventories tight around the country, prices should remain relatively firm.”
The report said as of September, average home prices for Metropolitan Statistical Areas within the 10-City and 20-City Composites are back to their winter 2007 levels. Measured from their June/July 2006 peaks, the peak-to-current decline for both Composites is 11-13 percent. Since March 2012 lows, the 10-City and 20-City Composites have recovered by 35.1 percent and 36.4 percent, respectively.
