Tag Archives: S&P/Case-Shiller Home Price Indices

Home Values See Increase

3 May

adapted from Reverse Mortgage Daily April 30, 2013

Case-Shiller: Home Prices Rise Near 10%, Best Showing since 2006.

Home prices rose nearly 10% national on a year-over-year basis according to the latest reading from the S&P/Case-Shiller home price indices.


Prices showed an uptick of 8.6% year-over-year in February for Case-Shiller’s 10-city composite index and 9.3% for its 20-city composite index, indicating a home price recovery is holding strong.


“Home prices continue to show solid increases across all 20 cities,” said David Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “The 10- and 20-City Composites recorded their highest annual growth rates since May 2006; seasonally adjusted monthly data show all 20 cities saw higher prices for two months in a row – the last time that happened was in early 2005.”


Prices rose slightly from January to February with the 10- and 20-city indexes showing a .4% and .3% uptick, respectively. Regionally, Phoenix represented a standout market with 23% year-over-year growth while Atlanta and Dallas had the highest annual growth rates in the history of the index.


“Phoenix, San Francisco, Las Vegas and Atlanta were the four cities with the highest year-over-year price increases,” Blitzer said. “Atlanta recovered from a wave of foreclosures in 2012 while the other three were among the hardest hit in the housing collapse. At the other end of the rankings, three older cities – New York, Boston and Chicago – saw the smallest year-over-year price improvements.”


The data indicates housing is still on the upswing, despite mixed signals among multifamily indicators.


S & P Indices Press Release New York,May 29, 2012

29 May

 Pace of Decline in Home Prices Moderates as the First Quarter of 2012 Ends, According to the S&P/Case-Shiller Home Price Indices

– Data through March 2012, released today by S&P Indices for its S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, showed that all three headline composites ended the first quarter of 2012 at new post-crisis lows. The national composite fell by 2.0% in the first quarter of 2012 and was down 1.9% versus the first quarter of 2011. The 10- and 20-City Composites posted respective annual returns of -2.8% and -2.6% in March 2012. Month-over-month, their changes were minimal; average home prices in the 10-City Composite fell by 0.1% compared to February and the 20-City remained basically unchanged in March over February. However, with these latest data, all three composites still posted their lowest levels since the housing crisis began in mid-2006.

In addition to the three composites, five cities – Atlanta, Chicago, Las Vegas, New York and Portland – also saw average home prices hit new lows. This is an improvement over the nine cities reported last month. The S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, posted a 1.9% decline in the first quarter of 2012 over the first quarter of 2011. In March 2012, the 10- and 20-City Composites recorded annual rates of decline of 2.8% and 2.6%, respectively.

see the full report at http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldocumentfile&blobtable=SPComSecureDocument&blobheadervalue2=inline%3B+filename%3Ddownload.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1245334287526&blobheadervalue3=abinary%3B+charset%3DUTF-8&blobnocache=true

Are Reverse Mortgage Appraisal Values Really Lower Than Other Appraisals?

13 Mar

Reverse Mortgage Daily noted this week that originators have experienced a decline in reverse mortgage appraisals aligning with today’s tough housing climate. How low Federal Housing Administration reverse mortgage appraisals have fallen with respect to home prices overall is another question with recent data that sheds some light on the issue.

According to data compiled by Ibis Software Corp., the three-month moving average for HECM appraisals in September 2009 was $292,177.

Today, that average remains down nearly 13%, measuring $254,452 in June 2011, up slightly from the previous month’s average, but still down 3% from June 2010.

The figures compare with higher HECM home appraisals directly after the loan limit increase mandated by HUD in 2009, when the average appraisal saw an uptick to as high as $350,747 and $336,805 in the months following.

But average home values in the United States, while still uncertain, have suffered less according to the Case-Shiller Home Price Index, a monthly measure of home values over time. Case-Shiller data, which measures home values in major metropolitan areas and for the U.S. as a whole, shows regionally, average home prices are down closer to 5% over the same time period.

“Supposedly the housing crash had happened by December 2009, yet HECM appraisals are down 12% since then,” says Jerry Wagner of Ibis. “Case-Schiller says home values are only down 5% over this same period. I suspect that FHA appraisals have gotten tougher. And I’ve also heard that feeling from lenders.”

FHA appraisals in general should be in line with other home valuations. However, there are a few factors that may cause reverse mortgage appraisals to come in lower than the national average home value.

The average age of HECM properties tends to be higher. Additionally, property conditions tend to be an issue, with many HECM properties having lower values due to need for repairs or being dated.

Traditional FHA products include new and newer properties that meet or exceed typical market standards in relation to quality and condition, according to Landmark. This may cause even the average FHA appraisal to come in slightly higher than the HECM average.


28 Sep

According to the most recent Standard & Poors Case-Shiller Home Price Indices (the leading measure of U.S. home prices) released September 27,  the 20-city Metropolitan Statistical Areas, or MSAs, show a fourth month of sustained growth.

This is far from indicating real recovery, but it is a step in the right direction and a speck of optimism on the horizon of those of us in the real estate and mortgage business.

The table below summarizes the results for July 2011. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data. More than 24 years of history for these data series is available, and can be accessed in full by going to www.homeprice.standardandpoors.com


National Home Price Index Up In 2nd Q But Still Down Year-Over-Year

31 Aug


The U.S National Home Price Index increased 3.6% in the second quarter of 2011, but the index is still posting a decline of 5.9% over the same period last year.

As CBS News reported last night, average home prices are at a level comparable to 2003 levels across the nation.  With prices and mortgage interest rates so low, they asked, why aren’t people buying?

The answer seems to lie in the difficulty people are having in securing a loan.  Qualifying credit scores required for many lenders have jumped by 100 points.  Well qualified, buyers, however, should overcome their fear of the market and purchase their dream home at a price that is now within reach.

Buyers over age 62 should look into a reverse mortgage (HECM For Purchase).  No income or credit qualifications are currently required. 

Call Karen at Tradition Title Agency today for the name of an experienced loan officer who can help with any type of financing.