According to the May 2010 S&P/Case-Shiller Home Price Index, single-family home prices in the San Francisco MSA rose 1.7% from April ’10 to May ’10, down 34.9% from a peak in May 2006 but up 18.3% year-over-year (YOY).
For the broader 10-City composite (CSXR), home values rose 1.3% from April to May for a second straight monthly gain but remain down 29.6% from a peak in June 2006 (up 5.5% year-over-year).
“While May’s report on its own looks somewhat positive, a broader look at home price levels over the past year still do not indicate that the housing market is in any form of sustained recovery,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “Since reaching its recent trough in April 2009, the housing market has really only stabilized at this lower level. The two Composites have improved between 5 and 6% since then, but this is no better than the improvement they had registered as of October 2009. The last seven months have basically been flat.”
On a month-over-month basis, and for the first time in six months, prices rose across all three tiers for single-family homes in the San Francisco MSA.
The bottom third (under $335,860 at the time of acquisition) gained 2.1% from April to May (up 14.8% YOY); the middle third rose 2.6% from April to May (up 12.7% YOY); and the top third (over $611,205 at the time of acquisition) gained 1.6% from April to May (up 8.3% YOY versus 10.7% in April).
According to the Index, single-family home values for the bottom third of the market in the San Francisco MSA remain just above September 2000 levels having fallen 56% from a peak in August 2006, the middle third is back to just below April 2003 levels having fallen 34% from a peak in May 2006, and the top third is back to April 2004 levels having fallen 22% from a peak in August 2007.
Condo values in the San Francisco MSA rose 2.3% from April ’10 to May ’10, holding at a 4.7% gain on a year-over-year basis (down 29.4% from an December 2005 high) for the second straight month.
Our standard SocketSite S&P/Case-Shiller footnote: The S&P/Case-Shiller home price indices include San Francisco, San Mateo, Marin, Contra Costa, and Alameda in the “San Francisco” index (i.e., greater MSA) and are imperfect in factoring out changes in property values due to improvements versus appreciation (although they try their best).
∙ For the Past Year Home Prices Have Generally Moved Sideways [Standard & Poor's]
∙ April Case-Shiller Index: San Francisco MSA Up At Top But Down Below [SocketSite]