While the pace of increases continues to slow from the record setting gains recorded in April and May, single-family home and condo values in San Francisco continued to tick up in August.
According to the latest S&P/Case-Shiller Home Price Index, single-family home values in the San Francisco MSA rose 0.9% from July to August 2013. Up 25.4% year-over-year, the San Francisco Index remains 18.2% below a May 2006 peak.
For the broader 10-City composite (CSXR), home values gained 1.3% from July to August and are up 12.8% year-over-year but remain 21.0% below a June 2006 peak.
“Las Vegas and California continue to impress with year-over-year increases of over 20%. Denver and Phoenix posted 20 consecutive annual increases; Miami and Minneapolis 19. Despite showing 26 consecutive annual gains, Detroit remains the only city below its January 2000 index level.
The monthly percentage changes for the 20-City composite show the peak rate of gain in home prices was last April. Since then home prices continued to rise, but at a slower pace each month. This month 16 cities reported smaller gains in August compared to July. Recent increases in mortgage rates and fewer mortgage applications are two factors in these shifts.
Denver and Dallas again set new highs. All the other cities remain below their peaks. Boston and Charlotte are the two MSAs closest to their peaks with only 8-9% left to go. Las Vegas is still down 47.1% from its peak level.”
On a month-over-month basis, prices ticked up across all three San Francisco price tiers but only nominally for those in the top tier.
The bottom third (under $486,084 at the time of acquisition) gained 3.0% from July to August (up 40.6% YOY); the middle third gained 1.0% from July to August (up 28.6% YOY); and the top third (over $808,660 at the time of acquisition) gained 0.1% from July to August, up 18.5% year-over-year versus 18.8% in July.
According to the Index, single-family home values for the bottom third of the market in the San Francisco MSA are back to June 2003 levels (38% below an August 2006 peak); the middle third is back above August 2004 levels (18% below a May 2006 peak); and the top third remains just above April 2005 levels and 6% below its August 2007 peak.
Condo values in the San Francisco MSA rose 1.4% from July to August 2013 and are up 27.7% year-over-year, within 5.0% of 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).
∙ Home Prices Rise Further in August 2013 [Standard & Poor's]
∙ San Francisco’s Top Tier Homes And Condos Within 6% Of Peak [SocketSite]