Data through January 2013, released by S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices showed average home prices increased 7.3 percent for the 10-City Composite and 8.1 percent for the 20-City Composite in the 12 months ending in January 2013. All 20 cities posted year-over-year gains with Phoenix leading the way with a gain of 23.2 percent. Nineteen of the 20 cities showed acceleration in their year-over-year returns. Despite posting a positive double-digit annual return, Detroit was the only city to show a deceleration. After 28 months of negative annual returns, New York came into positive territory in January.
“After more than two years of consecutive year-over-year declines, New York reversed trend and posted a positive return in January. The Southwest (Phoenix and Las Vegas) plus San Francisco posted the highest annual increases; they were also among the hardest hit by the housing bust. Atlanta and Dallas recorded their highest year-over-year gains,” said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “Economic data continues to support the housing recovery. Single-family home building permits and housing starts posted double-digit year-over-year increases in February 2013. Despite a slight uptick in foreclosure filings, numbers are still down 25 percent year-over-year. Steady employment and low borrowing rates pushed inventories down to their lowest post-recession levels.”
The chart above depicts the annual returns of the 10-City Composite and the 20-City Composite Home Price Indices. In January 2013, the 10- and 20-City Composites posted respective annual increases of 7.3 percent and 8.1 percent, and monthly increases of 0.2 percent and 0.1 percent.
“Economic data continues to support the housing recovery," said Blitzer. "Single-family home building permits and housing starts posted double-digit year-over-year increases in February 2013. Despite a slight uptick in foreclosure filings, numbers are still down 25 percent year-over-year. Steady employment and low borrowing rates pushed inventories down to their lowest post-recession levels.”
The chart below shows the index levels for the 10-City and 20-City Composite Indices. As of January 2013, average home prices across the United States are back to their autumn 2003 levels for both the 10-City and 20-City Composites. Measured from their June/July 2006 peaks, the decline for both Composites is approximately 29-30 percent through January 2013. The January 2013 levels for both Composites are approximately eight to none percent from their dip in early 2012.
