The average price of a single-family home rose 3.6% in the second quarter after dropping 4.1% for the first three months of 2011, according to the Standard & Poor’s/Case-Shiller index. The closely watched home price index declined 5.9% for the three months ended June 30 from a year earlier, when the federal homebuyer tax credit expired. Home prices are back at levels last seen in early 2003.
The S&P/Case-Shiller 10-city composite index decreased 3.8% in June from the prior month and the 20-city index fell 4.5%. Both indices and 13 of the 20 metropolitan statistical areas tracked by S&P/Case-Shiller rose in June from a year earlier.
“This month’s report showed mixed signals for recovery in home prices,” according to David Blitzer, chairman of the index committee. “No cities saw new lows in June 2011 and the majority of cities are seeing improved annual rates.” Home prices rose in 19 of 20 MSAs in June from the May with price in Portland, Ore., remaining flat with the prior month.
Cleveland has improved enough that average home prices in this market are back above its January 2000 levels,” Blitzer said. “Only Detroit and Las Vegas remain below those levels.” After peaking in the summer of 2006, the S&P/Case-Shiller home prices indices are down 32.1% for the 10-city and 32.3% for the broader composite through May. The indices are now at levels last seen in the summer of 2003.