Nationally, Home Prices Went Up in the Second Quarter of 2011 According to the S&P/Case-Shiller Home Price Indices

Data through June 2011, released today by S&P Indices for its S&P/Case-Shiller  Home Price Indices, the leading measure of U.S. home prices, show that the U.S. National Home Price Index increased by 3.6% in the second quarter of 2011, after having fallen 4.1% in the first quarter of 2011. To access click:  S&P/Case-Shiller Home Price Indices August 2011 Release
 

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4 Comments

  1. tim says:

    I don’t believe S&P/Case- Schiller uses a price per square foot approach in their analysis. It is ‘repeat sales’ they use, which in the San Jose, California area could lead to distortions in their analysis as a significant part of the market are ‘flippers’..foreclosures that are bought, fixed up and sold at a higher price. We’re actually seeing the price per square foot drop in many areas, and yet Case/Schiller shows an increase in price.

  2. Jim the Realtor says:

    I appreciate you guys doing the work you do, and I’m glad you make it public. Your blog format is a good idea too – hopefully you are looking for feedback.

    I’d like to help:

    http://www.bubbleinfo.com/2011/08/30/case-shiller-san-diego-june-11/

  3. Ed Hamilton says:

    Home price histories inflation-adjusted can be very instructive, e.g. this from 8/27/2006 NYT
    http://www.nytimes.com/imagepages/2006/08/26/weekinreview/27leon_graph2.html
    which includes “Two gains in recent decades were followed by returns to levels consistent since the late 1950′s.”.
    Using Tuesday’s S&P data release, here is this history thru 2011 Q2:
    http://homepage.mac.com/ttsmyf/RealHomes.gif
    http://homepage.mac.com/ttsmyf/RD_RJShomes_PSav.html
    (Per the preceding NYT quote, I’ll note that Real Homes was unchanged over 1958-1998, but CPI-U increased by a factor of 5.6!)

  4. David Blitzer says:

    Tim –
    S&P/Case-Shiller is a repeat sales index. However, the data are screened to eliminate flipper sales and other misleading information such as a sale to a related party. San Jose is not the only area seeing this kind of thing. Price per square foot has difficulties too. Declining price per square foot may reflect a shift in the mix of homes being sold rather than falling prices.

    Jim –
    Comments and suggestions for other aspects of housing that don’t receive enough coverage are welcome.

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