August 2, 2012 (Chris Moore)
Monthly home prices improved for a second consecutive month in May but still remained in negative territory year-over-year according to the latest S&P/Case-Shiller Home Price Indices. The difference in year-over-year prices was the smallest in 18 months.
All 20 of the Metropolitan Statistical Areas (MSAs) posted monthly increases in home prices with Chicago (+4.5 percent) reporting the largest increase followed by Atlanta (+4.0 percent) and San Francisco (+3.9 percent)
Twelve of the 20 MSAs reported year-over-year increases in home prices with Phoenix continuing to truly rise from the ashes for yet another month, posting the largest year-over-year increase in home prices of 11.5 percent. It was the fifth consecutive month that Phoenix has posted the highest year-over-year increase in the Indices.
Following Phoenix were Minneapolis (+4.7 percent) and Dallas (+3.8 percent).
Despite a monthly increase of 4.0 percent, Atlanta once again found itself with the largest year-over-year decline of 14.5 percent. Far behind Atlanta were Las Vegas (-3.2 percent and Chicago (-3.0 percent).
In year-over-year results, the 10-City Composite was 1.0 percent lower than in May of 2011 while the 20-City Composite was 0.7 percent lower than a year earlier. It was the smallest difference in prices in 18 months.
Compared to May, both the 10-City and 20-City Composites were up by 2.2 percent. It was the second consecutive month that monthly home prices have increased.
Not accounting for inflation, average home prices across the United States are back at the same levels they were in the spring and summer of 2003.
From their peak in June/July 2006, index levels for both the 10-City and the 20 City Composites have declined almost 33 percent.
Four MSAs, Atlanta, Cleveland, Detroit and Las Vegas, continued to see average prices that are below their January 2000 levels.
Tags: S&P, Case-Shiller Home Price Indices, 10-City Composite, 20-City Composite, home prices