From the S&P press release:
New York, March 29, 2011 – Data through January 2011, released today by Standard & Poor’s for its Case-Shiller Home Price Indices, the leading measure of U.S. home prices, show further deceleration in the annual growth rates in 13 of the 20 MSAs and the 10- and 20-City Composites compared to the December 2010 report. The 10-City Composite was down 2.0% and the 20-City Composite fell 3.1% from their January 2010 levels.
San Diego and Washington D.C. were the only two markets to record positive year-over-year changes. However, San Diego was up a scant 0.1%, while Washington DC posted a healthier +3.6% annual growth rate.
The same 11 cities that had posted recent index level lows in December 2010, posted new lows in January.
Double-dip enthusiasm from Forbes.com:
Continuing its descent to the lower depths of a double-dip trough, the U.S. housing market fell even further in January, according to the widely followed S&P/Case-Shiller Home price Indexes. The 20-City Composite fell 3.1% from January 2010 while 11 of the 20 metropolitan areas (MSA) surveyed hit their all-time lows since the index began. In the words of David Blitzer, Chairman of the Index, the latest readings “bring us weakening home prices with no real hope in sight for the near future.”
Every piece of data covered by the index seemed to come in negative in January, with 13 of the 20 MSAs showing further deceleration in annual growth rates and the 10 and 20-City Composites marking their sixth consecutive month of declines. With markets back at their summer-2003 levels, Blitzer sounded his most apocalyptic yet, saying “at worst, the feared double-dip recession may be materializing.”
Why does San Diego’s Case-Shiller Index keep holding it’s own?
Because the downturn started early here, so we’re a little ahead of the pack? Or the opposite, we’re just hanging on better before the eventual next leg down?
The constrained inventory of quality properties heightens the anxiety in homebuyers, and bidding wars are erupting regularly. But that happens in other areas too, yet San Diego is doing better.
There must be a perfect mix of qualified buyers/low inventory to keep prices buoyant?