Home Prices on the Rise in January

Average home prices through January increased on a monthly and yearly basis, according to the S&P/Case-Schiller home price index.

In January, the 10- and 20-city composites posted respective annual rises of 7.3% and 8.1%, and monthly increases of 0.2% and 0.1%.

For the 20-city composite, all metropolitan statistical areas posted year-over-year gains, with Phoenix having the largest uptick of 23.2%. Other MSAs that reported double-digit annual price gains included Atlanta, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis and San Francisco.

“The two headline composites posted their highest year-over-year increases since summer 2006,” said David Blitzer, chairman of the index committee at S&P Dow Jones Indices. “This marks the highest increase since the housing bubble burst.”

S&P said average home prices across the U.S. are back to their autumn 2003 levels for both the composites. Compared to their June/July 2006 peaks, the decline for both composites is approximately 29% to 30%.

Furthermore, the January 2013 levels for both composites are about 8% to 9% from their dip a year ago.

Yesterday, LPS said January home prices were up 6.7% from last year.

“Economic data continues to support the housing recovery,” Blitzer added. “Single-family home building permits and housing starts posted double-digit year-over-year increases in February 2013. Despite a slight uptick in foreclosure filings, numbers are still down 25% year-over-year. Steady employment and low borrowing rates pushed inventories down to their lowest post-recession levels.”