Has housing turned the corner for good?
The June 2011 Case-Shiller Index reading posted strong numbers across the board, with each of the index’s 20 tracked markets showing home price improvement from May.
Some markets — Chicago and Minneapolis — rose as much as 3.2 percent.
The rise in values is nothing about which to get overly excited, however. The Case-Shiller Index is just re-reporting what multiple data sets have already shown about the summer housing market; that it was stronger than the spring market, and that a recovery is underway, but occurring locally, at different rates.
For example, the June 2011 Case-Shiller Index shows the following :
- Denver, Dallas, Washington D.C., and the “California Cities” bottomed in 2009. Each has shown steady improvement since.
- None of the Case-Shiller cities showed negative growth between May and June 2011.
- 12 of Case-Shiller’s tracked cities have improved over 3 consecutive months.
The answer to the question is YES. For the past 90 days Home Values are on the Rise. Here in the North Georgia Mountains, our communities of Ellijay, Blue Ridge, Blairsville and Hiawassee has seen Home Values as a cumulative average drop 2% over the past year. However, since June of 2011, our Residential Real Estate Market has experienced a surge of nearly 14% in Median Sold Price. See Full Report Below.
In isolation, these statistics appear promising, but it’s important to remember that the Case-Shiller Index is a backward-looking data set, focusing on just a portion of the national housing economy.
As an illustration, the Case-Shiller Index’s “national report” only includes data from 20 cities nationwide. They’re not the 20 biggest cities, either. Smaller metropolitan areas such as Minneapolis (#48) and Tampa (#51) are included.
Larger ones including Houston (#4), Philadelphia (#5) and San Jose (#10) are not.
In addition, the Case-Shiller index fails to track sales of condominiums, multi-unit homes and new construction. In some markets, including Chicago, these excluded home type can represent a large share of the overall market.
The Case-Shiller Index is a fine data set for policy makers and economists. It describes the broader housing market and shows long-term trends. For the individual home buyer in Hiawassee , however, it’s much less useful. More than “broad data”, you want focused data that’s current and relevant.
The best place for data like that is a local real estate agent.
- Home Values Climb Rise Slightly Nationwide In April (thefrontporchview.com)
- Buyer Opportunities Open With Pending Sales Slipping (thefrontporchview.com)