Not only do we expect higher, but now much higher readings from the monthly Case-Shiller index. The consensus expected +9.0% nationally, and it came in at +9.3% for the 20-city composite – the biggest gain since May 2006.
“Home prices continue to show solid increases across all 20 cities,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “The 10- and 20-City Composites recorded their highest annual growth rates since May 2006; seasonally adjusted monthly data show all 20 cities saw higher prices for two months in a row – the last time that happened was in early 2005.
“It is very strong, it’s a solid rebound, but I would not call it a bubble,” said Blitzer about housing.
San Diego’s Case-Shiller index topped the national composite, with +10% improvements both the seasonally-adjusted, and non-seasonally adjusted readings.
This is the 13th month in a row that we’ve seen gains, which means the Y-O-Y readings will be on top of a previous gain as well. But we should see more eye-popping results in the next couple of months – probably higher than 10% increases year-over-year.
For example, here are the SD monthly average $/sf:
|Month||2012 Avg||2013 Avg||Difference|
By the time we see the Case-Shiller March and April readings, will buyer exhaustion be setting in? If so, more double-digit gains may cause them to surrender, especially when they see it tacked on to already-frothy list prices.