In the latest report on the housing industry, the S&P Case-Shiller® Home Price Index® for June 2010 showed the 10-City Composite posting a +5.0 percent annual growth rate, compared to +5.4 percent in May, and the 20-City Composite
was up 4.2 percent, versus its +4.6 percent May print. These may sound like great numbers, but the housing picture is anything but bright for two reasons: (1) the report notes that “June’s figures were the first to moderate from
their prior month’s pace, pointing to a possible deceleration in home price returns”; and (2) the recent poor home sales and mortgage application figures point to fewer future returns housing.
“Seventeen of the 20 MSAs and both Composites saw home prices increase in June over May – Las Vegas was down 0.6%, Phoenix and Seattle were both flat. Through the second quarter, 15 of the 20 MSAs and both Composites have positive annual growth rates, and no market is registering a doubledigit decline,” said David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. However, Blitzer observed, “The worry starts when you remember that the Homebuyers’ Tax Credit has expired,
foreclosures are still at high levels, and July data on home sales and starts were very, very weak. The inventory of unsold homes and months’ supply data were particularly troubling. If this relative weakness in demand continues, it will likely filter through to home prices in coming months.”
Click the following link for the full press release from Standard & Poor’s: S&P Case Shiller Home Price Index – June 2010.
For more information, please click on the “Housing Statistics” page on the menu bar above or in the Pages list in the left-side column.
Gregg D. Killoren
victoria1014
