By:Dennis Norman
Today the S&P/Case-Shiller Home Price Indices report was released which showed that,although still negative,the annual rate of decline of the 10-City and 20-City Composites improved for the fourth consecutive month in 2009.
The 10-City and 20-City Composites declined 16.8% and 17.1%,respectively,in May compared to the same month last year. These values are improvements over April’s data,which showed annual declines of 18.0% and 18.1% 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.
“The pace of descent in home price value appears to be slowing”says David M. Blitzer,Chairman of the Index Committee at Standard &Poor’s. “To put it in perspective,this is 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 added.
“While many indicators are showing signs of life in the U.S. housing market,we should remember that on a year-over-year basis home prices are still down about 17% on average across all metro areas,so we likely do have a way to go before we see sustained home price appreciation.”Mr. Blitzer added.
In terms of annual declines,the numbers remain relatively somber with all metro areas and the two composites in negative territory,and 16 out of the 20 metro areas are reporting double digit declines. Las Vegas,Los Angeles,Miami,Phoenix,Seattle and Tampa posted their lowest index levels in May since their respective peaks. From peak to trough Phoenix and Las Vegas are the worst off,down 54.5% and 53.4% 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 two consecutive months of positive returns. Eight of the 13 MSA’s reporting positive monthly returns for May were greater than +1.0%.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.