Housing prices improve in August, Case-Shiller says
Filed under: Economy
The U.S. housing sector's long, slow journey to health continues, as home prices in 20 cities rose 1.2 percent in August from the month before, according to the S&P/Case-Shiller U.S. National Home Price survey. However, prices were still down year-over-year, declining at a 11.3 percent annual pace in August. This is the smallest decline since January 2008.Economists surveyed by Bloomberg News had expected the Case-Shiller Home Price Index to fall at a 11.9 percent annual rate in August. The index fell 13.3 percent July, 15.4 percent in June, and 17.1 percent in May.
After 16 consecutive months of record annual declines, beginning in October 2007 and ending in January 2009, the indices have now registered seven consecutive months of improvement in annual returns.
Prices rise in 17 cities. Equally significant, only three cities -- Cleveland, down 0.5 percent, Charlotte, N.C., down 0.4 percent, and Las Vegas, down 0.3 percent -- registered price declines in August; 17 cities registered price increases.
And there was especially good news for Minneapolis area residents: the city registered the largest increase in August at 3.2 percent, the second straight month Minneapolis has snared that honor. San Francisco was second, notching a 2.8 percent gain.
"Broadly speaking, the rate of annual decline in home price values continues to improve" David M. Blitzer, Chairman of the Index Committee at Standard & Poor's, said in a statement. "While many of the markets remain down versus this time last year, the relative rate of decline has shown some real improvement. California, in particular, has seen some real positive prints in recent months. We see this general trend whether you look at the as-reported data or the seasonally adjusted figures."
August data shows continued firming. The areas with the largest year-over-year percentage declines were: Las Vegas, -29.9 percent, Phoenix, -25.1 percent, Detroit, -22.6 percent, Miami, -18.8 percent, and Tampa, -17.7 percent.
Year-over-year percentage price changes in other major U.S. cities were as follows: New York, -9.6 percent, Chicago, -12.7 percent, Boston, -4.2 percent, Washington, D.C., -7.9 percent, Atlanta, -10.6 percent, Dallas, -1.2 percent, Denver, -1.9 percent, Los Angeles, -12.0 percent, and Seattle, -14.7 percent.
Originally greeted by Wall Street with a shrug, S&P / Case-Shiller home price data rose to market-mover status in 2008 as it became clear that the United States' housing boom during the past decade was, in fact, a bubble fueled considerably by mortgage market excesses, from borrower to lender. The bursting of that bubble triggered record home mortgage foreclosures and mortgage back securities defaults, which led to the financial crisis that the U.S. and world are still trying to end today.
Housing Sector Analysis: Notch another modest victory for the U.S. housing sector. It appears that after a three-year plunge, home prices are turning the corner. Price declines in 20 major cities continue to decelerate on a year-over-year basis – a sign they are bottoming. Still, investors, and potential home sellers, should not become overly bullish: major headwinds remain, and the housing sector could retrench. Household formation has to increase to give the housing market the demand it needs to sustain its recovery. That means job growth has to start, and it appears we're still a few months away from net, monthly job gains in the U.S. economy.
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Reader Comments (Page 1 of 2)
10-27-2009 @ 10:18AM
robert cohen said...
If people think a 20% correction is a market that's almost tripled in the last decade is a bottom, they're deluded. There will always be fluctuations in the market, but with unemployment increasing and people living on their equity line's of credit, I think we still have a way to go. Too much optimism too quickly. The real story is not too pretty.
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10-27-2009 @ 10:53AM
DAVID QUILICI said...
Sorry life in northern California is different. I live in Oakley, Ca and my property values have gone down 60%! This is not imaginary. The tax assessor has rolled back my taxes 60%. I bought another income home at 40% of what it sold for in 2006. I am stopping my payment this month. My lender, Litton, Keeps asking for more and different data on a loan modification. I have been trying for a year. I have 800 fico scores and have always paid my obligations for 50 years. If this doesn't get any action, we can move out and have a garage sale before we do. We will sell everything that can be stripped from a expensive beautiful home.
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10-27-2009 @ 11:48AM
Marc said...
This article is misleading. This article states the truth. Housing prices to continue to decline! They are saying the opposite here to sucker people in.
http://www.dailyfinance.com/2009/10/21/housing-prices-forecast-to-fall-in-2010-and-could-keep-fallin/
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10-27-2009 @ 2:15PM
nana7 said...
Government must think we're stupid. If housing prices are rising, we'll again be in the same place, houses being sold for more then true value. When these home owners default, there will again be a huge amount of homes in foreclosures again. The government needs to worry about jobs first so then people can afford to buy homes and keep up on their morgages. The banks are too large, The SEC hasn't been doing it's job. The government needs to tax the corps. who have their factories over seas as much as they can to force them back into the states. Put high tariffs on all imported goods. The corp. people and elected govetnment officials are living high on the hog while we suffer.. Things will get worse,..,
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10-27-2009 @ 2:19PM
AL said...
What BALONEY! Home prices have been inflated for far to many years and needed to come down. Wages have not kept pace and the housing industry and Wall Street was screwing the consumer for far to long. Sorry, but home prices needed to come down. The bailouts of Wall Street and big business is a total disgrace. Sorry, but hme prices still need to come down to reality. Smart people know that homes are still to inflated.
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10-27-2009 @ 5:40PM
Paul said...
Home prices going up? That's terrible! Home prices have been so stupidly expensive in the past ten years that it's a wonder anyone has bought one. The banks and real estate companies look at the median income of a family and decide how much you can afford. Then they set the median price of the average house at the price dictated by the monthly payment and set it at that. It is the biggest scam in America next to big oil.
10-27-2009 @ 2:24PM
anencephalic said...
More propaganda from ASOL.
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10-27-2009 @ 3:31PM
mkwl said...
Those thinking about long-term recovery, know the enviroment will be a big winner in the conversion to biofuels & biopower -- saw a cool site; Balkingpoints ; incredible satellite view of earth
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10-27-2009 @ 3:34PM
Lar said...
The real unemployment # for CA is closer to 20%. Million dollar homes have flooded the market. Commercial rents at at all time high! 2010 will show a dramatic increase in Foreclosures in CA alone due to the decline of market value and variable loans adjusting. Homes worth less than mortgages increasing. Tax increases on the rise. Incomes frozen or reduced. But hey, we have bottomed out according to those who profit; right!
Has anyone noticed "The Coppenhagen Agenda," for December? US Solvereignty is at stake. A New World order will replace our Constitution. President Obama will sign this treaty. Why do you think they gave him the 'Nobel Peace Prize?' Progressives in this administration along with Marxists, Communists, Socialists will bring this country down! Don't believe me just ask anyone who fled Europe one could be your neighborjust ask them! If the US Senate ratifies the Coppenhagen agreement you will know who you are dealing with in Washington! No matter what we as citizens do after that America will not be able to recover our rights. Wake Up America its not too late to stop this! Why isn't the media covering this?
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10-27-2009 @ 4:38PM
twonewport said...
Yep, they're going up, yup, unha. dat's what they say. There are some bridges for sale too!
These industry heads need to be beaten like baby seals.
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10-27-2009 @ 5:03PM
mickey said...
I don't care who you vote for, just vote against Harry Reid in the next Nevada Senatorial election. I voted for him thinking he was going to represent me. He doesn't.
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10-27-2009 @ 5:28PM
Edward said...
More lies designed to manipulate the sheep. the only houses selling now are foreclosures and short sales. the bottom will be reached when housing values drop to 1997 levels, that is when this inflationary bubble was initiated by the FED. So folks hold onto your money and wait so that you do not get hooked into high taxes and insurances which have not dropped. Pretty soon Washington will be giving these houses away with a free whopper card just to get someone in them paying taxes.
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10-27-2009 @ 5:38PM
the man said...
just hype to get the commissions going again. right shiller!!
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10-27-2009 @ 5:43PM
Paul said...
And who is going to be the New World President? (Tony Blair)
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10-28-2009 @ 4:58PM
jojo said...
what a bunch of crap & lies, homes were way to overpriced to begin with, they got a longggg wayyyy to go down so that the middle class workers (those who actually still even have jobs) can afford to buy and we are a longgg wayyy from there so this is just one more lie!
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10-27-2009 @ 7:29PM
lpi2007 said...
AGAIN, PRICES GOING BACK UP HUH, SO THE MILLIONS OF PEOPLE WHO DON'T HAVE A JOB AND MILLIONS WHO HAVE LOST THEIR BENIFITS AGAIN IN OUT IN THE COLD, I USED TO THINK THAT THIS COUNTRY IS FAIR, BOY WAS I WRONG. LOUISVILLE PARANORMAL INVESTIGATIONS, CHECK OUT MY SITE AND WATCH MAURY TOMORROW, MY CLIP WILL BE ON THERE.
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10-27-2009 @ 7:42PM
Michael said...
Home prices have started heading up the same time the rates were lowered. Sounds like the gov. is trying to keep this bubble iflated. When and if rates climb above7 percent, the prices will go down again. It's just a game.
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10-27-2009 @ 7:47PM
SuperBob said...
Don't fall for this realtor "news" hold out for lower prices when the government giveaway ends and the next wave of foreclosures hits. Lower prices are on the way!!
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10-27-2009 @ 8:02PM
Flip said...
Pick Out the Property
then GO Purchase the Material
then GO Hire the Labor.
What does your house cost now ? hmmmmmm
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10-27-2009 @ 8:05PM
Flip said...
And Who is Going to Be Our World President?
hmmmmmmmmmmm?
Tony Blair.
Reply