Home Values Rose In June 2011!

By
Mortgage and Lending with Platinum Funding Group, Inc.NMLS-243033 NMLS 4195

 

Case-Shiller Changes May to June 2011

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.

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 Irvine , however, it’s much less useful. More than “broad data”, you want focused data that’s current and relevant.

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Rainer
108,064
Ron T. Weems Jr.
Weems Real Estate Group/N.W.R.E. LLC

Tiffany,

Thanks for the information. Have a great labor day weekend.

September 03, 2011 03:17 AM
Rainmaker
876,141
Ronald DiLalla
No. Orange Cty Real Estate
Century 21 Discovery DRE 01813824

Hi Tiffany,,,,nothing  to write home about, but at least it is positive and hopefully will continue.

September 03, 2011 03:22 AM
Rainmaker
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Jeff & Heather Rickert
Harleysville Realtor ; RSPS
Keller Williams Real Estate

Excellent presentation of your community!  

Congratulations and best wishes!

September 03, 2011 08:39 AM
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Rainmaker
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Tiffany Taylor

Platinum Funding Group
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