Average national home prices were up in 2012.
“Home prices ended 2012 with solid gains,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “Housing and residential construction led the economy in the 2012 fourth quarter. In December’s report all three headline composites and 19 of the 20 cities gained over their levels of a year ago. Month-over-month, nine cities and both composites posted positive monthly gains. Seasonally adjusted, there were no monthly declines across all 20 cities.”
Data through December 2012 was released this week for the S&P/Case-Shiller Home Price Index – a leading measure of U.S. home prices. It showed that the top three composites ended the year with strong gains. The national com
posite posted an increase of 7.3% for 2012. The 10- and 20-City Composites reported annual returns of 5.9% and 6.8% in 2012.
On a city-by-city basis, Atlanta and Detroit posted their biggest year-over-year increases of 9.9% and 13.6% since the start of their indices in January 1991. Dallas, Denver, and Minneapolis recorded their largest annual increases since 2001. Phoenix continued its climb, posting an impressive year-over-year return of 23.0%. It has posted eight consecutive months of double-digit annual growth.
Nineteen of the 20 MSAs posted positive year-over-year growth – only New York fell.
However, the good news might not continue. S&P has suggested that the strongest gains may have already been reached.