S&P/Case-Shiller Home Price Indices Show Sustained Recovery in Home Prices

S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies and the world’s largest global resource for index-based concepts, data and research, has this Wednesday released its S.&P./Case-Shiller index, an indicator of the value of residential real estate in 20 metropolitan regions across the United States, which showed that prices increased 4.3 percent from October 2011, the largest year-over-year increase in two and a half years.

As disclosed in the report, prices rose year-over-year in 18 of the 20 metropolitan areas tracked by the index. Only Chicago and New York saw decreases. Home prices in Phoenix have risen for the 13th month in a row. San Diego was second best with nine consecutive monthly gains. Miami’s increase was the fourth-highest among the list of 20.

Said David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices, “Looking over this report, and considering other data on housing starts and sales, it is clear that the housing recovery is gathering strength. Higher year-over-year price gains plus strong performances in the southwest and California, regions that suffered during the housing bust, confirm that housing is now contributing to the economy.  Last week’s final revision to third quarter GDP growth showed that housing represented 10% of the growth while accounting for less than 3% of GDP. One indication of the rebound is the gains from the bottom.  The largest rebound is 24.2% in Detroit even though prices there are still about 20% lower than 12  years ago. San Francisco and Phoenix have also rebounded from recent lows  by 22.5% and 22.1% with prices comfortably higher than 12 years ago. The smallest recoveries are seen in Boston and New York, two cities in the northeast which suffered smaller losses in the housing bust than the Sunbelt or California.” 

Confirming the report, South Florida home prices in general, according to local Realtor boards, have increased on an annual basis for 10 consecutive months. For instance, the Greater Fort Lauderdale Realtors last week said Broward County's median price in November was $210,000, a 9 percent increase from a year ago. In Palm Beach County, according to the Realtors Association of the Palm Beaches, the median price last month was $219,500, up 20 percent as compared with last year’s prices.

The latest S&P/Case-Shiller Home Price Indices can be accessed at http://www.standardandpoors.com/indices/sp-case-shiller-home-price-indices/en/us/?indexId=spusa-cashpidff--p-us----