Mary Myzia, Broker

Broker / CDPE

Home Price Growth at 6-Year High, According to the S&P/Case-Shiller
Home Price Indices


Data through January 2013, released today by S&P Dow Jones
Indices for its S&P/Case-Shiller1Home Price Indices, a leading measure of
U.S. home prices, showed average home prices increased 7.3% for the 10-City
Composite and 8.1% for the 20-City Composite in the 12 months ending in January
2013.

All 20 cities posted year-over-year gains with Phoenix leading the
way with a gain of 23.2%. Nineteen of the 20 cities showed acceleration in their
year-over-year returns. Despite posting a positive double-digit annual return,
Detroit was the only city to show a deceleration. After 28 months of negative
annual returns, New York came into positive territory in January.

The
two headline composites posted their highest year-over-year increases since
summer 2006,” says David M. Blitzer, Chairman of the Index Committee at S&P
Dow Jones Indices. “This marks the highest increase since the housing bubble
burst.

“After more than two years of consecutive year-over-year
declines, New York reversed trend and posted a positive return in January. The
Southwest (Phoenix and Las Vegas) plus San Francisco posted the highest annual
increases; they were also among the hardest hit by the housing bust. Atlanta and
Dallas recorded their highest year-over-year gains.

“Economic data
continues to support the housing recovery. Single-family home building permits
and housing starts posted double-digit year-over-year increases in February
2013. Despite a slight uptick in foreclosure filings, numbers are still down 25%
year-over-year. Steady employment and low borrowing rates pushed inventories
down to their lowest post-recession levels.”

As of January 2013, average
home prices across the United States are back to their autumn 2003 levels for
both the 10-City and 20-City Composites. Measured from their June/July 2006
peaks, the decline for both Composites is approximately 29-30% through January
2013. The January 2013 levels for both Composites are approximately 8-9% from
their dip in early 2012.

In January 2013, nine cities -- Atlanta,
Charlotte, Las Vegas, Los Angeles, Miami, New York, Phoenix, San Francisco and
Tampa -- and both Composites posted positive monthly returns. Dallas was the
only MSA where the level remained flat.

In terms of annual rates of
change, all 20 cities as well as both Composites posted positive change.
Atlanta, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, Phoenix and San
Francisco were the eight MSAs to report double-digit annual returns. Additional
content on the housing market may also be found on S&P Dow Jones Indices’
housing blog: www.housingviews.com.

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