US House Prices Growing at 2006 Levels Says Case-Shiller

When it comes to tracking movements in US house prices none carry more weight than the Case-Shiller index. So who can argue with that very index when it tells us that US home prices grew by more in 2012 than they have since the summer of 2006?

Let's be honest, there is no shortage of reports when it comes to data on the US housing market. But, then it is a massive industry in a huge country so it is only to be expected.

However, some of the reports obviously carry more weight than others, and when it comes to tracking movements in US house prices none carry more weight than the Case-Shiller index. So who can argue with that very index when it tells us that US home prices grew by more in 2012 than they have since the summer of 2006?

S&P reported today that 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. According to the report growth was recorded in all 20 cities covered by the index, with Phoenix experiencing the biggest growth of 23.2%, and 19 out of the 20 experiencing faster growth than the previous index – this is excepting Detroit which saw growth decelerate despite a double-digit annual price growth. After 28 months of negative annual returns, New York came into positive territory in January.

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.

"The two headline composites posted their highest year-over-year increases since summer 2006," says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. "This marks the highest increase since the housing bubble burst.

"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.

- Tuesday 02 April 2013

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