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The US National Home Price Index rose 4.4 percent in the second quarter of 2010, according to figures released today by Standard & Poor’s for its S&P/Case-Shiller(1) Home Price Indices.
This is the leading measure of US home prices, and they show that after a fall in the first quarter of 2.8 percent, home prices rallied to show a modest improvement by the mid point of the year.
On a national level, home prices now stand at 3.6 percent above their year-start levels, rebounding from earlier crisis lows.
“The monthly Composites cover June and the national index covers the second quarter, when the government’s program for first time home-buyers was winding down,” said David M Blitzer, Chairman of the Index Committee at Standard & Poor’s. “While the numbers are upbeat, other more recent data on home sales and mortgages point to fewer gains ahead.”
“Even with concerns about near term developments, we recognize that the housing market is in better shape than this time last year. Further, California’s cities have moved from some of the hardest hit to three of the four leading cities based on year-over-year gains. Among the other hard hit cities, the news is also a bit encouraging – Las Vegas, however, remains among the weaker cities.”
The 10-City and 20-City Composite were up 1.0 percent in June over May, with 17 of the 20 metro areas showed an increase in June compared to May.
“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 double-digit decline,” added Blitzer.
“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.”
While it’s obviously too early to tell for certain, the third quarter of 2010 is not shaping up to be as promising as the second quarter has been.?
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