Sept. 3, 2010
 
S&P/CASE-SHILLER: Second Quarter of 2010 Saw Modest Improvement in Home Prices
According to the S&P/Case-Shiller Home Price Indices
 
By David M. Kinchen
Huntingtonnews.net Real Estate Writer
 
The U.S. National Home Price Index rose 4.4% in the second quarter of 2010, after having fallen 2.8% in the first quarter, according to data through June 2010 released this week by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices.
 
Nationally, home prices are 3.6% above their year-earlier levels. In June, 17 of the 20 MSAs covered by S&P/Case-Shiller Home Price Indices, one of the leading measures of U.S. home prices, and both monthly composites were up; and the two composites and 15 MSAs showed year-over-year gains.
 
“The monthly Composites cover June and the national index covers the second quarter, when the government’s program for first time home-buyers was winding down. While the numbers are upbeat, other more recent data on home sales and mortgages point to fewer gains ahead,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. “Even with concerns about near term developments, we recognize that the housing market is in better shape than this time last year. Further, California’s cities have moved from some of the hardest hit to three of the four leading cities based on year-over-year gains. Among the other hard hit cities, the news is also a bit encouraging – Las Vegas, however, remains among the weaker cities.
 
Blitzer said that 17 of the 20 MSAs and both Composites saw home prices increase in June over May, while Las Vegas was down 0.6% and Phoenix and Seattle were both flat. Through the second quarter, 15 of the 20 MSAs and both Composites have positive annual growth rates, and no market is registering a double- digit decline.
 
"The worry starts when you remember that the Homebuyers’ Tax Credit has expired, foreclosures are still at high levels, and July data on home sales and starts were very, very weak," Blitzer added. "The inventory of unsold homes and months’ supply data were particularly troubling. If this relative weakness in demand continues, it will likely filter through to home prices in coming months.”
 
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