Wednesday, June 27, 2012

S&P/Case-Shiller: Home Prices Rise in April 2012

The latest Standard & Poor's/Case-Shiller Home Price Index -- reporting data through April 2012 -- was released June 26.   The report shows the Washington region's housing market continues to perform above other markets nationwide.

Accurate local statistics can be found at Real Estate Business Intelligence (RBI) which provides housing data for specific neighborhoods in Washington, DC and surrounding suburbs. RBI's latest report -- released June 11 -- is a more accurate picture of the Washington, DC Metro Area housing market.

For a better understanding of how to interpret housing data check out my blog post How to Evaluate Housing Reports

Washington Metropolitan Statistical Area (MSA)
DC, Maryland, Virginia, West Virginia

  • S&P reports that on a monthly basis home prices in the Washington region rose 2.8% from March to April.

  • On an annual basis DC area home prices increased 1.6% from April 2011. The Washington Region was one of only ten Metropolitan Statistical Areas which saw positive annual returns.

  • According to the S&P/Case-Shiller 2011 Year in Review -- released March 16th -- single-family home prices in Washington, DC increased 8.4% from market bottom in 2009 and are about 80% above their 2000 levels.

  • On a monthly basis average home prices increased 1.3% in April for both the 10- and 20-City Composites. This comes after seven consecutive months of falling home prices as measured by both indices.

  • On an annual basis April’s data indicate home prices fell by 2.2% for the 10-City Composite and by 1.9% for the 20-City Composites, versus April 2011. While still negative, this is an improvement over the annual rates of -2.9% and -2.6% recorded for the month of March 2012.

  • Ten of the 20 Metropolitan Statistical Areas measured saw positive annual returns – Washington, DC, Boston, Charlotte, Dallas, Denver, Detroit, Miami, Minneapolis, Phoenix, and Tampa.


When reviewing the S&P/Case-Shiller data keep in mind the following critical points:

  • Property Status - The S&P/Case-Shiller Home Price Indices include statistics for distressed properties (i.e. foreclosures, short sales), skewing home prices lower.

  • Report Date - These numbers are for April 2012. The S&P/Case-Shiller Home Price Indices are published on a 2-4 month lag to offset delays in sales price data from county deed recorders.

  • Property Type - The index reports single-family/detached home prices only; condo and co-op sales statistics are not included in the analysis.

Washington Metropolitan Statistical Area Defined

S&P methodology defines the Washington region as a vast "Metropolitan Statistical Area" stretching aross three states from West Virginia, through the District of Columbia, and into Maryland. Housing market statistics for such a vast area bear little relevance for an individual consumer seeking clarity on local home values.  Below is the area described as Washington:

  • Washington, DC
  • Maryland - Calvert, Charles, Frederick, Montgomery, and Prince Georges Counties
  • Virginia - Alexandria City, Fairfax City, Falls Church City, Fredericksburg City, Manassas City, Manassas Park City; Arlington, Clarke, Fairfax, Fauquier, Loudoun, Prince William, Spotsylvania, Stafford, Warren Counties
  • West Virginia - Jefferson County

No comments:

Post a Comment