S&P/Case-Shiller: Housing Continues Improvement despite Concerns
Half of the 20 largest markets measured by Standard & Poor’s/Case-Shiller Home Price Indices suffered a loss between September and October. Still, the improvement between October 2012 and October 2013 continues to impress even as some uncertainty lies ahead.
All 20 cities posted annual growth since October 2012, with particularly strong gains in markets that had been damaged most during the last decade's housing market crash (Las Vegas, San Francisco, and Los Angeles). Even the smallest gainers (New York, Cleveland) posted gains nearing 5%. That said, nine markets actually showed negative movement on housing prices on a monthly basis between September and October, while another posted a flat performance. Factor in economic uncertainty tied to the Federal Reserve’s tapering of quantitative easing and its impact on mortgage rates as well as increasing common predictions of single-digit price growth in 2014, and housing’s future looks far from clear in the near term.
“Housing data paints a mixed picture suggesting that we may be close to the peak gains in prices,” said David Blitzer, of S&P Dow Jones. “However, other economic data point to somewhat faster growth in the new year.”
- Brian Shappell, CBA, CICP, NACM staff writer