South, West Lead June Home Price Gains

Home prices rose by 5.1 percent on an annual basis in June, unchanged from May, driven by strong activity in the South and West, according to the Standard & Poor’s CoreLogic Case-Shiller Indices, New York.

The 10-City Composite posted a 4.3 percent annual increase, down from 4.4 percent in May. The 20-City Composite reported a year-over-year gain of 5.1 percent, down from 5.3 percent in May.

Month over month, the National Index posted a 1,0 percent gain, while both the 10-City Composite and the 20-City Composite posted 0.8 percent increases, before seasonal adjustments; after seasonal adjustment, the National Index recorded a 0.2 percent month-over-month increase, and both the 10-City Composite and 20-City Composite posted 0.1 percent decreases. Nine cities saw prices rise, two cities were unchanged, and nine cities experienced negative monthly prices changes.

Mark Vitner, senior economist with Wells Fargo Securities, Charlotte, N.C., said the slowdown in the 10- and 20-City Indices reflect some cooling in large markets and recurring residual seasonal adjustment issues.

Portland, Seattle and Denver reported the highest year-over-year gains among the 20 cities over each of the past five months. In June, Portland led the way with a 12.6 percent year-over-year price increase, followed by Seattle at 11.0 percent and Denver with a 9.2 percent increase. Six cities reported greater price increases in the year ending June from a month ago.

In the strongest region, the Pacific Northwest, prices are rising at more than 10 percent; in the slower Northeast, prices are climbing a bit faster than inflation.

“Nationally, home prices have risen at a consistent 4.8% annual pace over the last two years without showing any signs of slowing,” said David Blitzer, managing director and chairman of the Index Committee with S&P Dow Jones Indices. “Overall, residential real estate and housing is in good shape.”

The report said as of June, average home prices for the MSAs within the 10-City and 20-City Composites are back to their winter 2007 levels.