Tuesday, August 31, 2010

Case-Shiller Index: Existing Home Prices Rise 1.0%, Up 4.2% From Prior Year

The twenty-city Case-Shiller Index for existing home prices in the three months ending June rose by 1.0% on a non-seasonally adjusted basis, following 1.3% growth in May. The ten-city metro area index reported 1.0% growth from May and registered 5.0% higher than one year ago. As the index is a three-month average of home prices, price appreciation over the quarter from the home buyer tax credit was likely responsible for the index’s increase. Prices are expected to be falling now, but the declines will not likely register on the index’s three-month rolling average until September. The Case-Shiller press release set these expectations saying, “recent housing indicators point to more ominous signals as tax incentives have ended and foreclosures continue.”

Seventeen of the twenty metro areas reported price appreciation from May to June. Las Vegas was down 0.6% and Phoenix and Seattle were both flat.

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