Thursday, March 30, 2017

Real Estate Prices Climb But Not All Gains Are Equal

Earlier this week the Case-Shiller Housing Price Index released their latest report which you can read here. On a national level housing prices have been trending up since the 2012 trough.  The Case- Shiller data series does not adjust for inflation so the index measures nominal prices.

Here is a graph from the Federal Reserves FRED system detailing the 10 City Index and it's constituents.  Below that is a list of each cities index value at the peak in April 2006 compared to where it is today. As you can see on a national level home prices are still 9.75% below their peak. Additionally 7 out of 10 cities are still BELOW their peak prices including New York City, and most surprisingly Washington DC.  If you are wondering why that's surprising read my previous article on DC housing prices. Overall the gains are not even, and there is still a lot of work to be done. Rising interest rates will eventually start to put downward pressure on prices.

Here is the

S&P Case Shiller 10 City Index Value & Constituents
April 2006January 2017% Change
10 City Index226.88206.73-9.75%
Las Vegas235.76155.71-51.41%
Los Angeles273.09256.99-6.26%
New York City216.48186.75-15.92%
San Diego251.32233.56-7.60%
San Francisco218.82235.917.24%
Washington DC252.29220.59-14.37%

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