The latest Standard & Poors/Case-Shiller Home Index released today indicated that while its 10- and 20-city composite indices declined 16.8 and 17.1 percent, respectively, in May compared to the same month a year ago, the indices were improvements over April's data, which had showed annual declines of 18 and 18.1 percent, respectively.
"After 16 consecutive months of record annual declines, beginning in October 2007 and ending in January 2009, the indices have now shown four consecutive months of improvement in annual returns," according to the report's press release.
David M. Blitzer, the chairman of the index committee of Standard & Poors, said that "The face of descent in home price values appears to be slowing," adding that "there is a clear inflection point in the year-over-year data."
"Looking at the monthly data," he continued, "13 of the 20 metro areas reported positive returns; and the 10-city and 20-city composites reported positive returns for the first time since the summer of 2006. To put it in perspective, these are the first time we have seen broad increases in home prices in 34 months. This could be an indication that home price declines are finally stabilizing."
He cautioned, however, "we likely have a way to go before we see sustained home price appreciation."
"As of May 2009," the report said, "average home prices across the United States are at similar levels to where they were in the middle of 2003....From the peak in the second quarter of 2006, the 10-city composite is down 33.3 percent and the 20-city composite is down 32.3 percent. In terms of annual declines, the numbers remain relatively somber with all metro areas and the two composites in negative territory, and 16 of the 20 metro areas are reporting double digit declines....From peak to trough Phoenix and Las Vegas are the worst off, down 54.5 percent and 53.4 percent, respectively. More upbeat news is seen in the monthly data: Dallas and Denver have reported three consecutive months of positive returns. Atlanta, Boston, Cleveland, San Francisco and Washington D.C., each reported to consecutive months of positive returns."
The indices have a base value of 100 in January 2000.
The New York metropolitan area's index for this past May was 170.51, the highest of the twenty areas surveyed. The press release indicated that "New York's home prices peaked in June of 2006 with an index value of 215.83." Maureen Maitland, the vice president of index services for S & P, said that "over the last 10 years, New York has been one of the markets that has held onto a lot of its value," adding that prices are "better than the national average, but it's not one of the better performing markets at this point. It's hovering in the middle."
In January 1987, the report indicated that the New York's area index would have been 74.42.
"After 16 consecutive months of record annual declines, beginning in October 2007 and ending in January 2009, the indices have now shown four consecutive months of improvement in annual returns," according to the report's press release.
David M. Blitzer, the chairman of the index committee of Standard & Poors, said that "The face of descent in home price values appears to be slowing," adding that "there is a clear inflection point in the year-over-year data."
"Looking at the monthly data," he continued, "13 of the 20 metro areas reported positive returns; and the 10-city and 20-city composites reported positive returns for the first time since the summer of 2006. To put it in perspective, these are the first time we have seen broad increases in home prices in 34 months. This could be an indication that home price declines are finally stabilizing."
He cautioned, however, "we likely have a way to go before we see sustained home price appreciation."
"As of May 2009," the report said, "average home prices across the United States are at similar levels to where they were in the middle of 2003....From the peak in the second quarter of 2006, the 10-city composite is down 33.3 percent and the 20-city composite is down 32.3 percent. In terms of annual declines, the numbers remain relatively somber with all metro areas and the two composites in negative territory, and 16 of the 20 metro areas are reporting double digit declines....From peak to trough Phoenix and Las Vegas are the worst off, down 54.5 percent and 53.4 percent, respectively. More upbeat news is seen in the monthly data: Dallas and Denver have reported three consecutive months of positive returns. Atlanta, Boston, Cleveland, San Francisco and Washington D.C., each reported to consecutive months of positive returns."
The indices have a base value of 100 in January 2000.
The New York metropolitan area's index for this past May was 170.51, the highest of the twenty areas surveyed. The press release indicated that "New York's home prices peaked in June of 2006 with an index value of 215.83." Maureen Maitland, the vice president of index services for S & P, said that "over the last 10 years, New York has been one of the markets that has held onto a lot of its value," adding that prices are "better than the national average, but it's not one of the better performing markets at this point. It's hovering in the middle."
In January 1987, the report indicated that the New York's area index would have been 74.42.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
6sqft delivers the latest on real estate, architecture, and design, straight from New York City.
