Sept. 29, 2010
 
S&P/Case-Shiller Home Price Indices: July Home Prices Remain Stable Around Recent Lows
Blitzer: Don't Expect a Return to 'Lofty' Home Price Levels of 2005-2006
 
By David M. Kinchen
Huntingtonnews.net Real Estate Writer
 
The S&P/Case Shiller composite index of 20 metropolitan areas declined a minuscule 0.1 percent in July from June on a seasonally adjusted basis, according to data through July 2010, released Tuesday, Sept. 28 by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices.
 
Considered the leading measure of U.S. home prices, the S&P/Case Shiller indices show that the annual growth rates in 16 of the 20 MSAs and the 10- and 20-City Composites slowed in July compared to June 2010. The 10-City Composite is up 4.1% and the 20-City Composite is up 3.2% from where they were in July 2009. For June they were reported as +5.0% and +4.2%, respectively. Although home prices increased in most markets in July versus June, 15 MSAs and both Composites saw these monthly rates moderate in July.
 
“Home prices crept forward in July. Ten of the 20 cities saw year-over-year gains and only one – Las Vegas – made a new bottom, as the impact of the first time home buyer program continued to fade away,” said David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “The year-over- year growth rates for 16 of the cities and both Composites weakened in July compared to June. While we could still see some residual support from the homebuyers’ tax credit, which covers purchases closing through September 30th, anyone looking for home price to return to the lofty 2005-2006 [levels] might be disappointed. Judging from the recent behavior of the housing market, stable prices seem more likely.
 
Blitzer added: “In the monthly data, 12 of the 20 MSAs and the two Composites were up in July over June; but the monthly rates also seem to be weakening. The next few months may give us an idea of the true strength of the housing market, as the temporary economic stimuli will have ended. Housing starts, sales and inventory data reported for August do not show signs of a robust market, and foreclosures continue.”
 
With July’s data, 10 of the 20 MSAs are reporting negative annual growth rates. With June’s report only five cities were negative on an annual basis – Atlanta, Cleveland, Dallas, Denver and Portland all fell back to reporting declining annual growth rates. The three cities in California -- Los Angeles, San Diego and San Francisco -- showed the strongest annual growth rates of +7.5%, +9.3% and +11.2%, respectively.