Housing Increases Again

Just out from Case Shiller/S&P, but despite the first chart, this is a very solid report:

New York, August 26, 2014 – Data through June 2014, released today by S&P Dow Jones Indices for its S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, show a sustained slowdown in price increases. The National Index gained 6.2% in the 12 months ending June 2014 while the 10-City and 20-City Composites gained 8.1%; all three indices saw their rates slow considerably from last month. Every city saw its year-over-year return worsen.

imageThe National Index, now being published monthly, gained 0.9% in June. The 10- and 20-City Composites increased 1.0%. New York led the cities with a return of 1.6% and recorded its largest increase since June 2013. Chicago, Detroit and Las Vegas followed at +1.4%. Las Vegas posted its largest monthly gain since last summer.

The chart above depicts the annual returns of the U.S. National, the 10-City Composite and the 20-City Composite Home Price Indices. The S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 6.2% annual gain in June 2014. The 10- and 20-City Composites posted year-over-year increases of 8.1%.

imageNow, how can I make the claim this is a “solid” report?  Well, look at the actual prices, not the Year-on-Year change in the following chart.

“The chart above shows the index levels for the U.S. National Home Price Index, as well as its annual returns. As of June 2014, average home prices across the United States are back to their levels posted in the spring of 2005. The National Index was up 0.9% over May 2014 and 6.2% above June 2013.:”

And that’s what makes this a solid report:  Despite the YoY figures going down, the total prices were still going up and still earning back against some of he losses from the Housing bubble collapse.

And that’s really good news, even if the futures are too stupid to get it… as shown by the Dow only being up 21 points in the pre-open.

Go figure.  Not everyone reads Page 2 of press releases, I guess. Oh, wait, that would be more work…