NEW YORK NY – Home prices across 20 cities nationwide rose 4.3 percent during the 12 months ending in October (2012), as measured by the Case-Shiller Home Price Indices released Wednesday (Dec. 26, 2012), and that upbeat performance out-distanced analysts’ forecasts. Anticipated seasonal weakness did show up, however, as 12 of the 20 posted monthly declines in home prices during October itself.
“Looking over this report, and considering other data on housing starts and sales, it is clear the housing recovery is gathering strength,” said David M. Blitzer, chairman of the Index Committee. “Higher year-over-year price gains plus strong performances in the southwest and California, regions that suffered during the housing bust, confirm that housing is now contributing to the economy.”
Case-Shiller produces two composites that measure cumulative housing price results over 10 and 20 cities. In Wednesday’s report, both recorded annual increases of 3.4 percent and 4.3 percent, respectively, during October 2012. They were larger than the 2.1 percent and 3.0 percent annual rates posted for September 2012. In 19 of the 20 cities, annual returns in October were higher than September.
“One indication of the rebound is the gains from the bottom,” Blitzer added. “The largest rebound is 24.2 percent in Detroit, even though prices there are still about 20 percent lower than 12 years ago. San Francisco and Phoenix have also rebounded from recent lows by 22.5 percent and 22.1 percent, with prices comfortably higher than 12 years ago.”
This article was cross-posted to the Polley Associates’ blog
Photo from PR Newswire