Home Prices Rose in Second Quarter

Release date: 08/26/09
U.S. home prices rose in the second quarter for the first time in three years while logging a second-straight monthly increase in June, according to the S&P Case-Shiller home-price indexes.For the second quarter, the S&P Case-Shiller U.S. National Home Price Index posted a 14.9% drop from a year earlier, an improvement over the record 19.1% drop in the first quarter. It was up 2.9% sequentially.
David M. Blitzer, chairman of S&P's index committee, said he's seeing some positive signs for the second month in a row and sees "hints of an upward turn from a bottom."
The monthly numbers showed 15 of 20 major metropolitan areas posted price declines of more than 10% from a year earlier, with the Sun Belt continuing to be hit the hardest. Nationally, home prices are at levels similar to early 2003.
At the end of the second quarter, average national home prices are down 30% from their peak in the second quarter of 2006.The indexes showed prices in both 10 and 20 major metropolitan areas fell 15% in June from a year earlier and rose 1.4% from May. Eighteen regions reported a slight price increase in June from a month earlier. Month-to-month gainers were again led by Cleveland, which posted a 4.2% gain, and San Francisco, which rose 3.8%. Las Vegas again fared worse, dropping 2%.
For the 15th straight month, no region was able to avoid a year-over-year decline. Las Vegas edged out Phoenix as the worst performer. The two cities posted drops of 32.4% and 31.6%, respectively. Detroit followed with a 25% decline. The best year-over-year performer was Dallas, which posted a 2.2% decline.
The data come a few days after the National Association of Realtors said existing-home sales jumped to their highest level in nearly two years last month as cheaper prices and the availability of tax credits continued to entice buyers.
Source: The Wall Street Journal