News & Opinions
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House Prices Remain On A Path Toward Recovery
Michael Neal / NAHB / August 27, 2013
Standard and Poor’s reported that house prices rose in June. According to the most recent release, the S&P/Case-Shiller House Price Index – National Index grew by 7.1% on a not seasonally adjusted basis in the second quarter and 10.1% over the previous four quarters. The House Price Index – 20 City Composite grew by 12.1% over the past year as all 20 cities posted annual gains. Year-over-year house price growth was strongest in Las Vegas, 24.9%, San Francisco, 24.5%, Los Angeles, 19.9%, and Phoenix, 19.8%. Meanwhile, house prices in New York rose by 3.3%.
Standard & Poor’s calculates tiered house price indexes for 17 cities included in its House Price Index – 20 City Composite. Tiered house price indexes for Cleveland were not available in March 2013. Tiered indexes measure changes in the value of existing single-family houses in three price tiers – low, middle, and high. Each tier represents approximately one-third of the sales transactions in each respective market. An earlier post illustrated that house prices in the low tier experienced the largest decline following the housing boom, but are currently recording the strongest post-trough increases.