According to the August 2012 S&P/Case-Shiller Home Price Index, single-family home values in the San Francisco MSA gained 0.5% from July 2012 to August 2012 and are up 5.3% year-over-year but remain down 34.8% from a May 2006 peak.
For the broader 10-City composite (CSXR), home values gained 0.8% from July to August, up 1.4% year-over-year but remain down 29.9% from a June 2006 peak.
Nineteen of the 20 cities and both Composites showed monthly gains in August. Seventeen cities and both Composites posted positive annual returns in August 2012. In 18 cities and both Composites annual rates improved in August versus July. Dallas’ rate remained unchanged at +3.6% and Chicago worsened slightly from a -1.0% annual rate in July to a -1.6% annual rate in August.
Phoenix continues to lead the home price recovery. It recorded its fourth consecutive month of double-digit positive annual returns with a +18.8% rate for August. Atlanta posted a -6.1% annual rate, however this is significantly better than the nine consecutive months of double-digit declines it posted from October 2011 through June 2012. Las Vegas’ annual rate finally moved to positive territory with a +0.9% annual rate of change in August 2012, its first since January 2007.
On a month-over-month basis, values rose across all three San Francisco price tiers.
The bottom third (under $357,663 at the time of acquisition) gained 2.6% from July to August (up 7.5% YOY); the middle third gained 0.9% from July to August (up 7.3% YOY); and the top third (over $653,509 at the time of acquisition) gained 0.4% from July to August, up 4.7% year-over-year.
According to the Index, single-family home values for the bottom third of the market in the San Francisco MSA have returned to just below October 2000 levels (down 56% from a peak in August 2006), the middle third has returned to June 2002 levels (down 36% from a peak in May 2006), and the top third has returned to just below May 2004 levels (down 21% from a peak in August 2007).
Condo values in the San Francisco MSA gained 2.5% from July to August and are up 11.1% year-over-year but remain 25.6% below their December 2005 peak.
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).
∙ S&P/Case-Shiller: Home Prices Continued to Rise in August 2012 [Standard & Poor's]
∙ San Francisco Home Prices Gain In July, Condos Up 8.1 Percent YOY [SocketSite]