According to the S&P/Case-Shiller Home Price Index, single-family home values in the San Francisco MSA ticked up a nominal 0.2% from January to February of 2014. Up 22.7% on a year-over-year basis, the San Francisco Index remains 16.7% below a May 2006 peak.
For the broader 10-City composite, home values were unchanged from January to February but remain 13.1% higher year-over-year, 20.5% below a June 2006 peak.
“Despite continued price gains, most other housing statistics are weak. Sales of both new and existing homes are flat to down. The recovery in housing starts, now less than one million units at annual rates, is faltering. Moreover, home prices nationally have not made it back to 2005. Mortgage interest rates, which jumped in May last year and are steady since then, are blamed by some analysts for the weakness. Others cite difficulties in qualifying for loans and concerns about consumer confidence. The result is less demand and fewer homes being built.
Home values ticked up across all three price tiers in San Francisco for the first time in five months.
The bottom third (under $489,988 at the time of acquisition) gained 0.7% from January to February (up 33.0% YOY); the middle third gained 0.7% from January to February (up 20.6% YOY); and the top third (over $780,988 at the time of acquisition) gained 0.9% from January to February and is up 20.4% year-over-year.
According to the Index, single-family home values for the bottom third of the market in the San Francisco MSA are back above September 2003 levels (36% below an August 2006 peak); the middle third is back above August 2004 levels (18% below a May 2006 peak); and the top third is just below April 2006 levels and within 3% of an August 2007 peak.
Condo values in the San Francisco MSA gained 1.2% from January to February, the first gain in five months, and are up 22.6% year-over-year and within 4.0% 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).