Data through August 2013, released by S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices showed that the 10-City and 20-City Composites increased 12.8 percent year-over-year. Compared to July 2013, the annual growth rates accelerated for both Composites and 14 cities.
“The 10-City and 20-City Composites posted a 12.8 percent annual growth rate,” said David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “Both Composites showed their highest annual increases since February 2006. All 20 cities reported positive year-over-year returns. Thirteen cities posted double-digit annual gains. Las Vegas and California continue to impress with year-over-year increases of over 20 percent. Denver and Phoenix posted 20 consecutive annual increases; Miami and Minneapolis 19. Despite showing 26 consecutive annual gains, Detroit remains the only city below its January 2000 index level."
On a monthly basis, the 10-City and 20-City Composites gained 1.3 percent in August. Las Vegas led the cities with an increase of 2.9 percent, its highest since August 2004. Detroit and Los Angeles followed with gains of two percent.
“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. Recent increases in mortgage rates and fewer mortgage applications are two factors in these shifts."
“Denver and Dallas again set new highs. All the other cities remain below their peaks. Boston and Charlotte are the two MSAs closest to their peaks with only eight to nine percent left to go. Las Vegas is still down 47.1 percent from its peak level.”
All 20 cities posted monthly gains in August, although most cities showed deceleration compared to July. Las Vegas was at the top of the range at +2.9 percent and Seattle was at the bottom with a return of +0.5 percent. Month-over-month, San Francisco has been losing momentum as prices increased 4.9 percent in April 2013 and 0.9 percent in August 2013.
“The trend of a healing housing market continues with the slowing of monthly gains in home prices," said Quicken Loans Economist Bill Banfield. "The unsustainable double digit gains have given way to slower growth which signals a normalized market. While this might be troubling to some homeowners hoping for a quicker growth in equity, this is one sign that the housing market is not forming another bubble.”
Fourteen cities showed year-over-year rate acceleration in August versus last month. Las Vegas was the leader with an annual rate of 29.2 percent, its highest since March 2005. Denver and San Francisco posted their highest growth rates since August 2001 and March 2001, respectively. Although Dallas did not break into double-digit returns, the city posted its highest annual gain since it was first published in January 2000.
