Metro Area Home Values Continue To Shine
The Standard and Poor’s Case-Shiller Home Price Indices released February 26 show strong growth in the majority of 20 cities and corresponding metro areas tracked during 2012.
The S&P Case-Shiller Home Price Indices measure home prices nationally and locally by compiling data from individual indexes including a 10-City Composite Index, a 20-City Composite Index, and a 20-Metro Area Index that includes metro areas for each of the 20 cities used in the 20-City Composite.
Metro Areas Show Nearly Universal Growth
19 of 20 metro areas showed higher home prices in Q 4 2012 with the New York metro area showing a decrease in home prices; this could be due in part to the impact of Hurricane Sandy.
The Atlanta and Detroit metro areas saw Q4 2012 Atlanta home prices increase by 9.9 percent year-over year, while Detroit home prices rose by 13.6 percent as compared to Q4 2011.
Home prices in the Phoenix Metro area improved by 23 percent compared to Q4 2011 for the highest year-to-year increase of all metro areas in 2012.
The 10 and 20 city indices and national home price composite improved as well.
The 10 and 20-city composites have gained approximately 8 to 9 percent since reaching their most recent lows in March of 2012; current readings indicate that home values have returned to autumn 2003 levels, but remain about 30 percent lower than they were at their peaks in June and July 2006.
On a month-to-month basis, both the 10-and 20- city composite Indices returned to positive readings with each rising by 0.2 percent, which recovered last month’s losses of 0.2 and 0.1 percent respectively.
The national home price composite is determined from information taken from the 9 geographic divisions established by the U.S. Census Bureau.
It rose by 7.3 percent year-to-year, but fell short of the Q3 2012 reading by 0.3 percent.
While some areas are still facing challenges, some cities and metro areas where home values declined the most are rebounding nicely.
All in all, it is quite apparent that the broad U.S. housing markets are recovering.