July 27, 2010
S&P/CASE-SHILLER: Home Prices Show Modest Gain in May, With Only Las Vegas Reporting Price Decline
By David M. Kinchen
Huntingtonnews.net Real Estate Writer
Standard & Poor’s for its S&P/Case-Shiller Home Price Indices reported Tuesday, July 27, 2010 that the annual growth rates in 15 of the 20 Metropolitan Statistical Areas (MSAs) and the 10- and 20-City Composites improved in May compared to April 2010. The 10-City Composite is up 5.4 percent and the 20-City Composite is up 4.6 percent from where they were in May 2009.
While 19 MSAs and both Composites reported positive monthly changes in May over April, only 12 of the MSAs and the two Composites saw better month-over-month growth rates in May than those reported in April.
Only Las Vegas of the 20 metro areas reported a price decline for May, with a 0.5 percent loss. Minneapolis had the largest gain, with prices increasing 2.8 percent and were up 11.6 percent over May 2009 levels. San Francisco had the largest year-on-year gain, 18.3 percent higher than May 2009. San Diego, at 12.4 percent, and Los Angeles, at 9.7 percent, also posted healthy year-on-year gains, the report said.
David M. Blitzer, chairman of the Index Committee at S&P, cautioned that the numbers don't necessarily indicate that the bottom has been reached and housing in on the road to recovery: “While May’s report on its own looks somewhat positive, a broader look at home price levels over the past year still do not indicate that the housing market is in any form of sustained recovery. Since reaching its recent trough in April 2009, the housing market has really only stabilized at this lower level. The two Composites have improved between 5 and 6 percent since then, but this is no better than the improvement they had registered as of October 2009. The last seven months have basically been flat.”
Blitzer further qualified the data: “The May 2010 data for 15 of the 20 MSAs and the two Composites show an improvement in annual returns compared to April’s report. With the month-over-month data, while 19 of the 20 MSAs and the two Composites were positive, we are in a strong seasonal period for home prices, so that was largely expected. In addition, there may still be some residual impact from the homebuyers’ tax credit, since they affect any purchase that closes through June 30th 2010. We need to watch where the housing markets will go after these temporary stimuli go away. June’s existing and new home sales and housing starts data do not show much real improvement in those statistics either. It still looks possible that the housing market might bounce along the bottom for the foreseeable future, before showing any real improvement that will filter through to the rest of the economy.”
In May, Las Vegas posted a new index low as measured by the current housing cycle, where it peaked in August 2006. The peak-to-trough figure is -56.4 percent, with that market generally returning any gains it had posted since 2000. Detroit is the only market that is worse off. Its index is at levels last seen in late 1994, indicating that any appreciation in value during the past 15 years is now gone.
The table below summarizes the results for May 2010. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data. More than 23 years of history for these data series is available, and can be accessed in full by going to www.homeprice.standardandpoors.com
May 2010 May/April April/March
Metropolitan Area Level Change (%) Change (%) 1-Year Change (%)
Atlanta 107.82 2.0% 1.9% 1.7%
Boston 155.95 1.6% 1.4% 4.8%
Charlotte 116.39 0.3% 1.1% -2.8%
Chicago 121.90 1.2% 0.6% -1.5%
Cleveland 105.85 1.0% 1.4% 3.7%
Dallas 119.93 1.5% 2.0% 2.9%
Denver 128.24 0.6% 1.7% 3.6%
Detroit 68.29 0.7% 0.2% -2.5%
Las Vegas 102.35 -0.5% 0.2% -6.5%
Los Angeles 174.67 1.7% 0.7% 9.7%
Miami 146.33 0.9% -0.8% 1.2%
Minneapolis 122.63 2.8% 1.7% 11.6%
New York 170.45 0.8% -0.2% -0.4%
Phoenix 111.00 0.9% 0.5% 7.2%
Portland 147.98 1.2% 1.8% 0.7%
San Diego 163.11 1.1% 0.7% 12.4%
San Francisco 142.16 1.7% 2.2% 18.3%
Seattle 146.82 1.2% 1.0% -1.4%
Tampa 138.29 0.9% 0.5% -1.5%
Washington 182.10 1.5% 2.4% 7.4%
Composite-10 159.36 1.2% 0.7% 5.4%
Composite-20 146.43 1.3% 0.9% 4.6%
Source: Standard & Poor's and Fiserv
Data through May 2010
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S&P/CASE-SHILLER: Home Prices Show Modest Gain in May, With Only Las Vegas Reporting Price Decline
By David M. Kinchen
Huntingtonnews.net Real Estate Writer
Standard & Poor’s for its S&P/Case-Shiller Home Price Indices reported Tuesday, July 27, 2010 that the annual growth rates in 15 of the 20 Metropolitan Statistical Areas (MSAs) and the 10- and 20-City Composites improved in May compared to April 2010. The 10-City Composite is up 5.4 percent and the 20-City Composite is up 4.6 percent from where they were in May 2009.
While 19 MSAs and both Composites reported positive monthly changes in May over April, only 12 of the MSAs and the two Composites saw better month-over-month growth rates in May than those reported in April.
Only Las Vegas of the 20 metro areas reported a price decline for May, with a 0.5 percent loss. Minneapolis had the largest gain, with prices increasing 2.8 percent and were up 11.6 percent over May 2009 levels. San Francisco had the largest year-on-year gain, 18.3 percent higher than May 2009. San Diego, at 12.4 percent, and Los Angeles, at 9.7 percent, also posted healthy year-on-year gains, the report said.
David M. Blitzer, chairman of the Index Committee at S&P, cautioned that the numbers don't necessarily indicate that the bottom has been reached and housing in on the road to recovery: “While May’s report on its own looks somewhat positive, a broader look at home price levels over the past year still do not indicate that the housing market is in any form of sustained recovery. Since reaching its recent trough in April 2009, the housing market has really only stabilized at this lower level. The two Composites have improved between 5 and 6 percent since then, but this is no better than the improvement they had registered as of October 2009. The last seven months have basically been flat.”
Blitzer further qualified the data: “The May 2010 data for 15 of the 20 MSAs and the two Composites show an improvement in annual returns compared to April’s report. With the month-over-month data, while 19 of the 20 MSAs and the two Composites were positive, we are in a strong seasonal period for home prices, so that was largely expected. In addition, there may still be some residual impact from the homebuyers’ tax credit, since they affect any purchase that closes through June 30th 2010. We need to watch where the housing markets will go after these temporary stimuli go away. June’s existing and new home sales and housing starts data do not show much real improvement in those statistics either. It still looks possible that the housing market might bounce along the bottom for the foreseeable future, before showing any real improvement that will filter through to the rest of the economy.”
In May, Las Vegas posted a new index low as measured by the current housing cycle, where it peaked in August 2006. The peak-to-trough figure is -56.4 percent, with that market generally returning any gains it had posted since 2000. Detroit is the only market that is worse off. Its index is at levels last seen in late 1994, indicating that any appreciation in value during the past 15 years is now gone.
The table below summarizes the results for May 2010. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data. More than 23 years of history for these data series is available, and can be accessed in full by going to www.homeprice.standardandpoors.com
May 2010 May/April April/March
Metropolitan Area Level Change (%) Change (%) 1-Year Change (%)
Atlanta 107.82 2.0% 1.9% 1.7%
Boston 155.95 1.6% 1.4% 4.8%
Charlotte 116.39 0.3% 1.1% -2.8%
Chicago 121.90 1.2% 0.6% -1.5%
Cleveland 105.85 1.0% 1.4% 3.7%
Dallas 119.93 1.5% 2.0% 2.9%
Denver 128.24 0.6% 1.7% 3.6%
Detroit 68.29 0.7% 0.2% -2.5%
Las Vegas 102.35 -0.5% 0.2% -6.5%
Los Angeles 174.67 1.7% 0.7% 9.7%
Miami 146.33 0.9% -0.8% 1.2%
Minneapolis 122.63 2.8% 1.7% 11.6%
New York 170.45 0.8% -0.2% -0.4%
Phoenix 111.00 0.9% 0.5% 7.2%
Portland 147.98 1.2% 1.8% 0.7%
San Diego 163.11 1.1% 0.7% 12.4%
San Francisco 142.16 1.7% 2.2% 18.3%
Seattle 146.82 1.2% 1.0% -1.4%
Tampa 138.29 0.9% 0.5% -1.5%
Washington 182.10 1.5% 2.4% 7.4%
Composite-10 159.36 1.2% 0.7% 5.4%
Composite-20 146.43 1.3% 0.9% 4.6%
Source: Standard & Poor's and Fiserv
Data through May 2010
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