The Case-Shiller Home Price Indexes for September were released today, here are some highlights:
1. “Home prices rose in the third quarter, marking the sixth consecutive month of increasing prices,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “With six months of consistently rising home prices, it is safe to say that we are now in the midst of a recovery in the housing market.”
2. On an annual basis, the Composite-20 index increased by 3% to 146.22 in September, the highest home price index since September 2010, two years ago (see brown line in chart). The Composite-10 index increased by 2.1% versus last September.
3. Annual home price increases for September were led by gains in Phoenix at 20.4% (highest annual increase since May 2006), followed by Minneapolis (8.8%), San Francisco (7.5%), Miami at 7.4% (highest since October 2006), Denver at 6.7% (highest since November 2001), Tampa at 5.9% (highest since October 2006), Seattle at 4.8% (highest since August 2007), and Dallas at 4.4% (highest since August 2007), Las Vegas at 3.8% (highest since August 2006) and Portland at 3.7% (highest since July 2007).
4. On an unweighted basis, the average annual increase in home prices for the Composite-20 cities was 4.8% for September, the highest since August 2006. Even without the 20.4% increase for Phoenix in September, the unweighted average of increases for the 20 cities at 3.95% was the highest since September 2006.
MP: As the chairman of the S&P Dow Jones Indices commented, the Case-Shiller home price data for September confirms that we are “now in the midst of a recovery in the housing market.” Recent reports from Zillow of a 4.7% increase in October home prices and from Core Logic of a 5% increase in September home prices suggest that we can expect further home price gains when those significant increases are eventually reflected in the lagging Case-Shiller index, which is a three-month moving average.