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U.S. housing prices continue to climb

Aug. 27, 2013, New York – Prices continue to rise south of the border, according to the S&P Dow Jones Induces that was released today. Data through June 2013 showed the national index grew 7.1 per cent in the second quarter and 10.1 per cent over the last four quarters. The 10-city and 20-city composites posted returns of 2.2 per cent for June and 11.9 per cent and 12.1 per cent over 12 months.

All 20 cities posted gains on a monthly and annual basis. San Francisco's rebound is the largest, up 47 per cent from its low in March 2009. Phoenix is second, 37.1 per cent above its September 2011 low.

"National home prices rose more than ten per cent annually in each of the last two quarters," says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. "However, the monthly city by city data show the pace of price increases is moderating.

"The Southwest and California have consistently led the recovery with Las Vegas, Los Angeles, Phoenix and San Francisco posting at least 15 months of gains. Looking at the cities, New York recorded its highest monthly return since 2002. Atlanta was up the most at +3.4 per cent and Washington DC had the lowest return at +1.0 per cent. In terms of annual rates of change, San Francisco lost its leadership position with Las Vegas showing the highest post-recession gain of 24.9 per cent.

"Overall, the report shows that housing prices are rising but the pace may be slowing. Thirteen out of twenty cities saw their returns weaken from May to June. As we are in the middle of a seasonal buying period, we should expect to see the most gains. With interest rates rising to almost 4.6 per cent, homebuyers may be discouraged and sharp increases may be dampened."

Additional content on the housing market may also be found on S&P Dow Jones Indices' housing blog: www.housingviews.com.

August 27, 2013  By  Amie Silverwood

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