Data through April 2013 presented by S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices showed average home prices increased 11.6 percent and 12.1 percent for the 10- and 20-City Composites in the 12 months ending in April 2013. From March to April, the 10- and 20-City Composites rose 2.6 percent and 2.5 percent, respectively. All 20 cities and both Composites showed positive year-over-year returns for at least the fourth consecutive month, as the cities of Atlanta, Dallas, Detroit and Minneapolis posted their highest annual gains since the start of their respective indices. On a monthly basis, all cities, with the exception of Detroit, posted positive change.
“The 10- and 20-City Composites posted their highest monthly gains in the history of S&P/CaseShiller Home Price Indices,” said David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “Thirteen cities posted monthly increases of over two percentage points, with San Francisco leading at 4.9 percent."
The chart above depicts the annual returns of the 10-City Composite and the 20-City Composite Home Price Indices. In April 2013, the 10- and 20-City Composites posted annual increases of 11.6 percent and 12.1 percent, respectively.
“The recovery is definitely broad based," said Blitzer. "The two Composites showed the largest year-over-year gains in seven years. Atlanta, Las Vegas, Phoenix and San Francisco posted year-over-year gains of over 20 percent in April. San Francisco was the highest at 23.9 percent. Phoenix posted 12 consecutive months of double-digit growth. Recent economic data on home sales and inventories confirm the housing recovery’s strength."
The chart above shows the index levels for the 10-City and 20-City Composite Indices. As of April 2013, average home prices across the United States are back to their early 2004 levels for both the 10-City and 20-City Composites. Measured from their June/July 2006 peaks, the peak-to-current decline for both Composites is approximately 26-27 percent. The recovery from the March 2012 lows is 13.1 percent and 13.6 percent, respectively.
"The 12.1 percent annual gain in prices was fueled by the vicious bidding wars occurring across the country," said Quicken Loans Chief Economist Bob Walters. "We will start to see the rise in home prices slow its pace once home inventory begins to catch up with buyer demand.”
For the month of April, 19 of the 20 cities showed positive returns; Detroit was the only MSA to remain flat. Compared to March 2013, thirteen cities showed improvement with Minneapolis showing the largest change with a gain of 2.9 percent compared to its March return of -1.1 percent. California is seeing impressive returns all around with gainsranging from 3.4 percent to 4.9 percent. Los Angeles, San Diego and San Francisco posted their highest gains since 2004, 1988 and 1987, respectively. Looking at the East Coast, Miami showed its largest return, 2.4 percent, in seven and a half years.
All 20 cities showed increases over their levels from 12 months ago. Twelve MSAs—Atlanta, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, Phoenix, Portland, San Diego, San Francisco, Seattle and Tampa—continued to show double-digit annual gains. Out of these 12 MSAs, Phoenix and Tampa were the only cities to show year-over-year deceleration.