Posts Tagged ‘ Case Shiller ’

Home Prices Continue to Climb as Year Winds Down

Home Prices Continue to Climb as Year Winds Down

BY: KRISTA FRANKS BROCK AND ASHLEY R. HARRIS

Despite the cooling temperatures, home prices continue to heat up across the country. The Federal Housing Finance Agency’s (FHFA’s) recently released Home Price Index posted an increase over the third quarter, a trend that has continued over the past nine quarters. The index, which incorporates sales data from Fannie Mae and Freddie Mac, rose 2 percent over the third quarter and 8.4 percent over the year.

LPS reported similar findings. National home prices rose 0.2 percent over the month in September, reaching $232,000 for the month, according to Lender Processing Services’ Home Price Index, which was released Monday. Year-over-year prices rose 9 percent in September, according to LPS.

At their current level, prices are about 14 percent below their peak reached in June 2006.

“Overall, the housing market experienced another strong quarter, but price appreciation in the latter part of the quarter was relatively subdued,” said Andrew Leventis, principal economist at FHFA.

FHFA’s calculations are somewhat lower than those calculated by Case Shiller. Released Tuesday—the same day as the FHFA HPI—Case Shiller reported a 3.2 percent quarterly increase and an 11.2 percent annual increase for the third quarter.

FHFA also measured prices on a seasonally-adjusted basis over the month, detecting a 0.3 percent increase over the month of September.

While the yearly price increase stands at 8.4 percent, when accounting for inflation, prices rose about 7.2 percent over the year, according to FHFA.

All 50 states and the District of Columbia experienced rising prices over the year in September, according toFHFA.

Nevada posted the steepest price increase over the year in September, according to FHFA—a 25 percent rise.

California (23 percent), Arizona (15 percent), Florida (12 percent), and Washington (12 percent) followed.

At the other end of the spectrum, Mississippi posted the smallest increase at 1 percent.

Wyoming, New Mexico, Connecticut, and Delaware all followed with price gains hovering just above 2 percent.

Of the nine Census divisions, prices rose most over the year in the Pacific division—19.2 percent.

No price decreases were reported over the year, but the smallest gain took place in the Middle Atlantic division—2.9 percent.

Over the month of September, the East South Central division posted the greatest price increase—a 1.9 percent gain.

The Middle Atlantic and Mountain divisions both posted 0.1 percent declines—the only declines over the month.

Two divisions reported no price change—the New England and the West North Central divisions.

Nevada and Connecticut posted the greatest price changes over the month—though in opposite directions.

Home prices in Nevada jumped 0.8 percent over the month, while prices in Connecticut fell 0.9 percent.

Two Southern states followed Nevada, tying for the second-greatest price increases over the month according to LPS—Georgia and South Carolina. Both states posted price gains of 0.7 percent in September.

Illinois and Florida both experienced 0.5 percent price increases, and Washington D.C. and Wisconsin both experienced 0.4 percent gains.

Rounding out the top 10, Arizona, Texas, and Indiana all posted 0.3 percent increases in home prices over the month, according to LPS.

Several Northeaster states joined Connecticut on the list of top 10 price declines in September. New Hampshire (-0.6 percent), Massachusetts (-0.5 percent), Pennsylvania (-0.4 percent), Vermont (-0.3 percent), and New Jersey (-0.2 percent) all fell in the ranks.

Colorado (-0.4 percent), Alaska (-0.3 percent), and Iowa (-0.2 percent) were the exceptions.

 

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August’s Annual Home Price Gains Set Post-Crisis Record

August’s Annual Home Price Gains Set Post-Crisis Record

10/29/2013 BY: TORY BARRINGER

The S&P/Case-Shiller Home Price Indices rose once again in August at their fastest annual rate in more than six and a half years, but the monthly pace continues to slow.

The Case-Shiller 10- and 20-city composites each posted yearly growth of 12.8 percent over August 2012, breaking July records and setting the fastest pace for growth since February 2006. Compared to July’s indices, annual growth accelerated in 14 of the tracked cities.

All 20 cities experienced price growth compared to last year, and 13 reported double-digit gains, with Las Vegas leading at 29.2 percent—its fastest rate of growth since March 2005.

Monthly numbers were slower, with both composites seeing a 1.3 percent increase—indicating prices may be approaching a plateau.

“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,” said David M. Blitzer, Index Committee chairman at S&P Dow Jones Indices. “Recent increases in mortgage rates and fewer mortgage applications are two factors in these shifts.”

All cities posted monthly improvements over July; again, Las Vegas set the pace at 2.9 percent, with Seattle sitting at the bottom at 0.5 percent.

As of August, average home prices across the nation are back to their mid-2004 levels. The current peak-to-decline for both composites (measured from mid-2006) is an estimated 20-21 percent. Compared to February-March 2012—when prices bottomed out nationally—the 10- and 20-city composites have recovered 22.1 percent and 22.7 percent, respectively.

Denver and Dallas, two markets that have come out of the crash and subsequent recovery ahead of most others, again set new highs for their indices at values of 146.95 and 132.30, respectively. Though Dallas was not one of the 13 cities reporting double-digit returns, it did see its highest annual gain since its index was first published in January 2000.

All other cities remain below their peaks, though Boston and Charlotte are closing in with less than 10 percent left to make up, Blitzer said. Despite encouraging numbers in August, Las Vegas is down 47.1 percent from its peak.

July Case Shiller Indices Improve More Slowly

July Case Shiller Indices Improve More Slowly

09/24/2013 BY: MARK LIEBERMAN, FIVE STAR INSTITUTE ECONOMIST 

Home prices rose in July by less than two percent for the first time since March but still reached their highest level since August 2008, according to the Case Shiller Home Price Indices released Tuesday. The 20-city index was up 1.8 percent in July – 12.4 percent in the last year. The companion 10-city index was up 1.9 percent, 12.3 percent since July 2012.

Economists surveyed by Bloomberg had expected the 20-city index to increase 2.0 percent from June, a 12.4 percent annual improvement.

All 20 cities included in the survey improved both month-to-month and year-to-year.

The two surveys have improved month-to-month and year-to-year for 14 consecutive months.

The Case Shiller report came as the Federal Housing Finance Agency (FHFA) said its House Price Index rose in July at the fastest pace since March. The FHFA index tracks values for only those homes with loans eligible for purchase by Fannie Mae or Freddie Mac generally those with lower values.

The Case Shiller 20-city index rose 1.4 percent in March and then by more than 2.0 in April, May and June. The 10-city index rose 1.3 percent in March followed by three straight months of gains greater than 2.0 percent.

The 10 city index rose to 176.52, up 3.23 from June’s 173.29. June’s index itself was revised down from the originally reported 173.37. The 20-city index was up 2.90 from June’s 159.59. The June index was not revised. In August 2008, the 10-city index was 176.71 and the 20-city index was 164.65.

In July, according to the National Association of Realtors, the median price of an existing since family home dropped 0.1 percent but was up 14.7 percent from a year earlier.

Even with the slower growth in July, the two indices have improved by double digits year-year for five straight months and the July year-year growth was the strongest since March 2006 for the 10-city index and since February 2006 for the 20-city index. While good news for home sellers, the continued sharp increases are likely to revive concerns of a growing housing bubble as personal income growth continues to stagnate.

Still the increase in home values, according to economic theory, should mean improved consumer spending. The “wealth effect” theory holds that consumers spend based on increase in net worth, not income. Home values accounted for about 25 percent of the increase in net worth in the first quarter, according to the latest data from the Federal Reserve.

The Case Shiller indices have gone up for eight straight months and 14 times in the last 16; each index dipped last October and November. The month-to-month increases were led by Chicago, where prices rose 3.2 percent from May to July. Prices have increased more than 3.0 percent per month in Chicago for three straight months and the index there is at its highest level since August 2010.

Prices rose more than 2.0 percent in July in Las Vegas (2.8 percent), Detroit (2.7 percent), Tampa (2.3 percent), San Francisco (2.2 percent), Atlanta (2.2 percent), Los Angeles (2.1 percent and San Diego (2.0 percent).

Half of the cities which showed month-to-month price gains of 2.0 percent or greater were in the West; none in the Northeast.

Prices have increased for 22 consecutive months in Phoenix, 18 straight in Minneapolis and 17 straight in San Francisco and Los Angeles. The price index for Denver, according to the July report, is at its highest level since the Case Shiller tracking began in January 1987.

The four cities with year-to-year price growth of greater than 20 percent were also in the West.

Year-to-year the price gains were led by Las Vegas, where prices were up 27.5 percent since July 2012, and San Francisco, where prices rose 24.8 percent in the last 12 months. Prices in Los Angeles were up 20.8 percent in the last year and San Diego saw a 20.4 percent year-to-year gain.

Despite the July improvement, the 10-city index is down 22.0 percent from its June 2006 high of 226.29 and the 20-city index is off 21.3 percent from its July 2006 peak of 206.52.

CoreLogic Acquires Case-Shiller

CoreLogic Acquires Case-Shiller

BY: TORY BARRINGER

CoreLogic, a leading residential property information, analytics, and services provider headquartered in California, announced its acquisition of Case-Shiller from Fiserv, Inc. The acquisition closed March 20.

In addition to offering the Case-Shiller Indexes—which will be renamed the “CoreLogic Case-Shiller Indexes”—CoreLogic will continue to offer its own Home Price Index (HPI), the company announced. The S&P/Case-Shiller Home Price Indices will retain their brand name, and all reports will continue to be published and distributed on their customary time schedules and in their current formats.

Dr. David Stiff, chief economist for Case-Shiller, will continue to supervise the preparation of the CoreLogic Case-Shiller Indexes and will comment on the findings of those indexes. Dr. Mark Fleming, chief economist for CoreLogic, will continue to supervise the preparation of the CoreLogic HPI reports and will comment on those.

 

Case-Shiller: August Home Prices at 2-Year High

Case-Shiller: August Home Prices at 2-Year High

10/30/2012 BY: MARK LIEBERMAN, FIVE STAR INSTITUTE ECONOMIST

U.S. home prices continued to increase in August as the Case Shiller 20-city Home Price Index increased 0.9 percent to its highest level since September 2010. The 20-city index is up 2.0 percent in the last year. At 145.87, the index was down 12.9 percent from where it was just before the 2008 presidential election.

The index rose in 19 of the 20 cities, falling only in Seattle.

The 10-city index also rose 0.9 percent in August, increasing to 158.62, 1.3 percent ahead of August 2011 and the highest level since October 2010.

Economists had expected the 20-city index to be 2.0 ahead of August 2011.

The monthly gain in each index was slower than in July, when the 10-city index went up 1.5 percent and the 20-city index improved 1.6 percent. July also saw gains in all 20 index cities.

Four of the cities—Cleveland, Denver, Miami and Tampa—are located in “battleground” states. In all but one, Denver, the home price index remains below where it was in the last report before the 2008 election.

While the price index in Denver is up 0.6 percent in the last four years, it was down 29.2 percent in Tampa, 22.2 percent in Miami, and 7.3 percent in Cleveland.

The median price of an existing single family home dropped 1.5 percent in August, according to the National Association of Realtors, but was up 8.0 percent from August 2011. In July, the median price of an existing single family home was up 9.7 percent from one year earlier.

Home values play a significant role in the nation’s economy following the “wealth effect,” which holds that households spend more as perceived wealth increases. Increases in household net worth due to real estate (rather than stock) values have a greater impact on consumption, which is more than 70 percent of GDP.

The prices gains reported by Case-Shiller were led by a 2.3 percent gain in Detroit, a 1.8 percent increase in both Atlanta and Phoenix, 1.6 percent in Las Vegas, 1.3 percent in Los Angeles, 1.2 percent in Minneapolis, 1.1 percent in Washington, D.C., and 1.0 percent in both Cleveland and Miami. The year-over-year price improvement in Las Vegas was the first in that city—which had been a poster child for the housing boom—since December 2006.

Prices rose year-over-year in 17 of the 20 cities—compared with July when prices rose year-over-year in 16 cities—led by Phoenix, 18.8 percent, Minneapolis, 7.4 percent, Miami, 6.7 percent, Denver 5.5 percent and San Francisco, 5.3 percent.

The steepest annual price drop was in Atlanta (6.1 percent), followed by New York (2.3 percent) and Chicago (1.6 percent).

Even with the improvement in April, the 10-city price index is down 29.9 percent from its June 2006 peak, and the 20-city index is down 29.4 percent from its July 2006 high point.

 

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