US single-family city home prices rose in June but at a slower pace, a
closely watched survey showed on Tuesday.
Data through May 2013, released today by S&P Dow Jones Indices for its
S&P/Case-Shiller Home Price Indices, the leading measure of US home prices,
showed increases of 2.5% and 2.4% for the 10- and 20-City Composites in May versus April. Dallas
and Denver reached record levels surpassing their pre-financial crisis peaks set in June
2007 and August 2006.
This is the first time any city has made a new all-time high. The 10- and 20-City Composites annual returns rose slightly from April to May as
they posted the best year-over-year gains since March 2006. All 20 cities increased from May
2012 to May 2013 and from April 2013 to May 2013.
The chart above depicts the annual returns of the 10-City Composite and the
20-City Composite Home Price Indices. In May 2013, the 10- and 20-City Composites posted annual
increases of 11.8% and 12.2%, respectively.
“Home prices continue to strengthen,” says
David M. Blitzer, chairman
of the Index Committee at S&P Dow Jones Indices. “Two cities set new highs, surpassing their pre-crisis
levels and five cities – Atlanta, Chicago, San Diego, San Francisco and Seattle – posted monthly gains of
over three percent, also a first time event.
“The Southwest and the West saw the strongest year-over-year gains as San
Francisco home prices rose 24.5% followed by Las Vegas (+23.3%) and Phoenix (+20.6%). New York
(+3.3%), Cleveland (+3.4%) and Washington DC (+6.5%) were the weakest. Monthly numbers before
seasonal adjustment showed all 20 cities experienced rising prices. San Francisco
(+4.3%), Chicago (+3.7%) and Atlanta (+3.4%) were the leaders. However, two cities – Cleveland and
Minneapolis were down slightly after seasonal adjustment.
“The overall report points to some shifts among various markets: Washington
DC is no longer the standout leader and the eastern Sunbelt cities, Miami and Tampa, are lagging
behind their western counterparts.”
All 20 cities showed positive monthly returns for May. Ten cities – Chicago,
Denver, Detroit, Las Vegas, Miami, New York, Phoenix, Portland, Seattle and Tampa – showed
acceleration. Chicago posted an impressive monthly rate of 3.7% in May; it was higher than in April by
one percentage point. Miami and Seattle had their largest monthly gains since August 2005 and
April 1990, respectively.
On an annual basis, all cities showed gains ranging from 3.3% to 24.5%.
Twelve MSAs (metropolitan statistical areas) – Atlanta, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, Phoenix, Portland, San
Diego, San Francisco, Seattle and Tampa – posted double-digit growth. Atlanta, Las Vegas, Phoenix and
San Francisco were the four cities to post annual increases of over 20%. Las Vegas and San
Francisco accelerated as measured by their May versus April year-over-year returns. Although Atlanta and
Phoenix continue to post impressive gains, their May annual rate decreased to just over 20% compared
to April. Detroit showed the most deceleration with a three percentage point decline.
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