The 20-City Case-Shiller Composite Index increased 5.4 percent year-over-year in February, down from January’s gain of 5.7 percent.
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On the national front, home prices continued to increase in February, rising 5.3 percent year-over-year and 0.2 percent month-to-month. Portland led the way with an 11.9% year-over-year price increase, followed by Seattle with 11.0%, and Denver with a 9.7% increase. The index measures prices compared with those in January 2000 and creates a three-month moving average.
On a sequential basis, unadjusted, the National Index logged a gain of 0.2% over January. After seasonal adjustment, the National Index recorded a 0.4% month-over-month increase.
Those increases still put Cleveland near the bottom of the pack of 20 cities in the Case-Shiller report. Yet, the average person who bought a single family home during the period from April 2003 – January 2009 is still underwater as is the average person that bought a condo between July 2003 – December 2009.
According to David Blitzer, Director and Chairman of the Index Committee at S&P Dow Jones Indices ‘The rate of home-price inflation is continuing to increase twice as fast as underlying inflation, but the pace is easing in the most recent numbers. Since the low of March 2012, home prices are up 34.5% and 36.3% on the 10-city and 20-city indexes, respectively. Among the six were Seattle, Portland OR, and San Diego, all of which were very strong last time.
Compared with their peak in the summer of 2006, home prices on both 10-city and 20-city indexes remain down about 11% to 13%.
While financing is not an issue for home buyers, rising prices are a concern in many parts of the country.
“Heading into spring, buyers looking for the most expensive homes will find somewhat softening prices, a larger selection of homes to choose from and more limited competition”, she wrote in an emailed response to the Case-Shiller report.
Blister said. “The visible supply of homes on the market is low at 4.8 months in the last report”.
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New home building hasn’t yet filled the gap.
