June Existing-Home Prices Show Increase

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According to Standard & Poor’s/Case-Shiller Home Price Indices, which measure prices of existing homes, there was a 4.4% increase nationally for the second quarter of the year and 3.6% for the year so far.The Indices’ 10- and 20-city composites showed gains in June and the second quarter. Reversing a temporary blip in demand, the Indices’ authors warn of “ominous signals” relating to the continuing rise of foreclosures and the elimination this spring of the federal home buyer tax credit.At 147.97, the 20-city composite increased in June by 4.2% over June 2009, as prices in 17 of the 20 markets tracked by the Index increased. In the second quarter of this year, existing-home prices were at about the same levels they were in the fall of 2003. The 20-city Index was still off 28.4% from peak levels in the summer of 2006.In June, the national Index stood at 138.03. Up 5.0%, the 10-city Index that month was 161.04. Over the same month a year ago, the largest gainers included San Francisco, which was up 14.3%; San Diego, up 11.2%; and Minneapolis, up 10.7%.Cities with the least year-over-year price growth were Detroit and Cleveland, with each at 0.8%.The majority of cities tracked showed more modest gains in June over May. The 10- and 20-city Indices moved forward 1.0%. With each increasing over May by 2.5%, Detroit, Chicago and Minneapolis led the way.Standard & Poor’s managing director Dr. David Blitzer stated that since the year 2000, markets that enjoyed big price run-ups in the early part of the decade have since lost 50% to 60% of their value.Source: builderonline.com