Tuesday, March 30, 2010

Home Prices in the New Year Continue the Trend Set in Late 2009, According to the S&P/Case-Shiller Home Price Indices

NEW YORK, NY, Mar. 30, 2010 – Data through January 2010, released today by Standard & Poor’s for its S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, show that the annual rates of decline of the 10-City and 20-City Composites improved in January compared to December 2009.

In fact, the 10-City Composite is unchanged versus where it was a year ago, and the 20-City Composite is down only 0.7% versus January 2009. Annual rates for the two Composites have not been this close to a positive print since January 2007, three years ago.

The chart (in the full release)  depicts the annual returns of the 10-City and 20-City Composite Home Price Indices, with a flat (0.0%) reading and down 0.7%, respectively, in January 2010 compared to the same month last year. All 20 metro areas and both Composites showed an improvement in their annual rates with this month’s readings compared to the December 2009 print.

“The report is mixed. While we continue to see improvements in the year-over-year data for all 20 cities, the rebound in housing prices seen last fall is fading.

"Fewer cities experienced month-to-month gains in January than in December 2009, on both a seasonally adjusted and unadjusted basis.” says David M. Blitzer, (top right photo) Chairman of the Index Committee at Standard & Poor’s.

“Moreover, in four cities – Charlotte, NC, Las Vegas, Seattle and Tampa – prices reached new lows following the financial crisis. Tampa and Las Vegas experienced some of the largest gains and declines in this cycle, while Charlotte and Seattle saw much more modest price booms and relatively late peaks.

 On a brighter note, San Francisco and Minneapolis are 15.2% and 12.9% above their trough values.”

For a complete copy of the release and graphs, please contact:
David R. Guarino, Director of Global Index Communications, Standard & Poor's, 212 438 1471