Dennis Norman
This morning, the S&P/Case-Shiller Index report for June was released showing US home prices increased for the third consecutive month however, average home prices in the U.S. are still about the same as they were over 8 years ago in early 2003. The report shows their 20-city composite home price index increased by 1.1 percent from the month before and declined by 4.5 percent from a year ago. and the 10-city composite home price index increased by 1.1 percent from the month before and was down 3.8 percent from the year before.
Report highlights:
- Nineteen of the 20 MSA’s showed a month over month increase in home prices and the remaining, Portland, was flat.
- Thirteen of the 20 MSA’s saw improvements in their year-over-year rates, however, they are all in negative territory and have been there for three consecutive months.
“This month’s report showed mixed signals for recovery in home prices. No cities made new lows in
June 2011, and the majority of cities are seeing improved annual rates. The National Index was up 3.6 percent from the 2011 first quarter, but down 5.9 percent compared to a year-ago,” says David M. Blitzer, Chairman of the Index Committee at S&P Indices. “Looking across the cities, eight bottomed in 2009 and have remained above their lows. These include all the California cities plus Dallas, Denver and Washington DC, all relatively strong markets. At the other extreme, those which set new lows in 2011 include the four Sunbelt cities – Las Vegas, Miami, Phoenix and Tampa – as well as the weakest of all, Detroit. These shifts suggest that we are back to regional housing markets, rather than a national housing market where everything rose and fell together.
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