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Average Home Prices Back to Late 2003 Levels

by devteam May 28th, 2013 | Share

S&P Dow Jones reported today that bothrnits 10-City and 20-City Case-Shiller Composite Indices posted increases in the first quarterrnof 2013 that were more than 10 percent above prices in the first quarter ofrn2012.  In addition, 15 of the 20 citiesrnit tracks had single month price increases in March that exceeded 1.2 percent.</p

The S&P Case-Shiller U.S. NationalrnComposite index which covers the nine Census Districts rose by 1.2 percent inrnthe first quarter compared to the fourth quarter of 2012 and was up 10.2rnpercent year-over-year.  Both the 10-Cityrnand the 20-City Indices gained 1.4 percent from February to March; the 10-Cityrnwas up 10. 3 percent on an annual basis and the 20-City was up 10.9 percent.</p

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“Home prices continue to climb,” DavidrnM. Blitzer, Chairman of the Index Committee said.  Home prices in all 20 cities posted annualrngains for the third month in a row. rnTwelve of the 20 saw prices rise at double digit annual growth.  The National Index and the 10- and 20-CityrnComposites posted their highest annual returns since 2006.”</p

There were some notable month over monthrnincreases.  San Francisco was up 3.9rnpercent, Seattle 3.0 percent, and Las Vegas and Portland, Oregon both rose 2.7rnpercent.  Only two cities posted price decreases</bfrom February to March; Minneapolis was down 1.1 percent and New York down 0.4rnpercent.  Prices in Chicago and Clevelandrnwere unchanged. </p

All 20 cities had positive year-over-yearrnchanges and all have shown annual increases for at least three consecutivernmonths.  Blitzer called even the weakestrngains in New York (2.6 percent), Cleveland (4.8 percent), and Boston (6.7rnpercent) “substantial.”  The strongestrngains were seen in Phoenix (22.5 percent), San Francisco (22.2 percent), andrnLos Vegas (20.6 percent.) </p

As of March, average home prices acrossrnthe U.S. are back to their late 2003 levels for both the 10- and the 20-CityrnComposites.  Measured from the June/Julyrn2006 peaks, the peak-to-current decline for both Composites is approximately 28rnto 29 percent and they have recovered from their respective troughs in Marchrn2012 by 10.4 for the 10-City and 10.9 percent for the 20-City. </p

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“Other housing market data reported inrnrecent weeks confirm these strong trends; housing starts and permits, sales ofrnnew homes and existing homes continue to trend higher,” Blitzer said.  “At the same time, the larger than usual sharernof multi-family housing, a large number of homes still in some stage of foreclosure,rnand buying-to-rent by investors suggest that the housing recovery is notrncomplete.”</p

The S&P indices combine matchedrnprice pairs for thousands of individual houses from the available universe ofrnarms-length sales data.  The NationalrnComposite is issued quarterly based on information for the nine censusrndistricts.  The 20- and 20-City Indicesrnare value-weighted averages.  Each has arnbase value of 100 in January 2000. rnTherefore a current index of 150 translates to a 50 percent appreciationrnin price since that date.

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.

About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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