Data through December 2012 for the S&P/Case-Shiller Home Price Indices showed that all three headline composites ended the year with strong gains. The national composite posted an increase of 7.3% for 2012.

Some of the year end transactions were to lock in the low capital gains rates before they changed on January 1, 2013.

The 10- and 20-City Composites reported annual returns of 5.9% and 6.8% in 2012. Nineteen of the 20 MSAs posted positive year-over-year growth – only
New York fell.




Home Prices Closed Out a Strong 2012 According to the S&P/Case-Shiller Home Price Indices, February 26, 2013
S&P Dow Jones Indices

Category: Real Estate

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

13 Responses to “Case-Shiller Home Price Indices: Home Prices Closed Out a Strong 2012”

  1. VennData says:

    The era of Bush and the GOP’s policy-induced Real Estate near-depression are over.

  2. Robert M says:

    You made the point in your year end review that you missed the housing rebound. You then went on to show how the Fed has made it possible to buy/lease almost any auto you want a few days ago. Both are predicated on the FED ZIRP. In the case of a home however you need a mortgage; a long term loan. My question is given that both sectors of the economy are booming based on ZIRP do you still believe you made a mistake not investing in the housing market not based on return to your portfolio but your understanding of the factors that move what can/should be in the portfolio? two should you be in car companies given the variables underlying their risk return attributes?

  3. RW says:

    New Home Sales at 437,000 SAAR in January

    This was above expectations of 381,000 sales in January. This is the strongest sales rate since 2008. This was another solid report. I’ll have more soon …

    As a promising underlying trend I can’t quibble –improvements in the housing sector(s) are typically associated with a recovering economy but that is not the same as saying the economy is robust enough to withstand shock nor, if it comes to that, is it saying that housing is being absorbed by households rather than other investors and speculators; i.e., stability remains in the future tense even if the argument for increased risk exposure is stronger. YMMD

  4. BennyProfane says:

    One thing to remember: The government is now holding 90% of new mortgages. They are the only game in town. Take away “investors” chasing yield by buying up junk to become landlords (that’s not going to end well – talk to any small landlord about the wonderful world of bad tenants and never ending maintenance), and 3.5 down FHA mortgages to 650 credit scores (and even the recently foreclosed upon) backed up by you, Mr. chump taxpayer, and there would be no market to speak of.

  5. rj chicago says:

    Thems some SCARY lookin charts to me. The whiplash since 2006 has me highly suspicious of anything in this market!!

  6. kek says:

    If an “investor” buys an asset at 50% of replacement, and has a waiting list of tenants willing to pay a 10% cap rate on the investment, it hardly sounds like chasing. Sounds more like the sweet spot.

  7. BennyProfane says:


    “If an “investor” buys an asset at 50% of replacement”, for the life of me, I wouldn’t understand why they wouldn’t just turn around and double their money, rather than going through the hassle of being a landlord.

  8. Joe Friday says:


    Shiller was just on NBC Nightly News saying, not so fast, this may not last:

    A lot of media accounts are saying we’re off to the races again, but I think buyers a wary, they’ve just been burned. We still have an unemployment rate at almost 8%.

  9. hammerandtong2001 says:

    A lot of pain, but even greater pain avoided.

    Much to mourn, but much more relieved.

    Millions of flushed himes, but tens of millions salavaged.

    I have spent half a century seeking even greater success in this amazing American economy. And even now, it’s wonders are a sight to behold. We are not Greece or Spain, or even anything European.

    Is that a faint glimmer of light at the end of long, dark and treacherous tunnel?


  10. Mike in Nola says:

    You can see the investor effect here in Houston. While the agents are touting the booming market, at least half the sales are to investors, many of whom are builders. I suppose they are getting indirect financing from Uncle Ben. They tear down an old, affordable house and put up a 3000 sq. ft. monster in the middle of a $300k area and list it for $1M hoping to get $600k.

    Don’t see how this is sustainable.

  11. kek says:

    We are starting year five of 0% cash returns, and the economy is digging out. I guess it only took four years of zero return for people to consider positive investment outcomes, and start pulling the cash from under the mattress. We are starting to see interest in undeveloped parcels of land in AZ after 6+ years of extreme pain. Once again, people that had the guts to buy merchandise when everybody else was selling are making a fortune. RTC part II.

  12. BuildingCom says:

    With millions of excess empty houses, demand fallen to 16 year lows and resale housing prices 40% HIGHER than new construction costs, what do you think is coming down the barrel at us?

  13. The median national price for Existing Homes was $177k in 2012, $11k more than the 2011 trough. Existing Home price is ending the year precisely on the long term Price/Family-Income trend line. In short, prices have resumed their secular uptrend and are presently at equilibrium.

    The more impressive story is that the median national price for New Homes was $244k, $27k above the 2009 trough and a mere $4k under the 2007 record. As mentioned last Summer, there is no doubt a new high will be set in 2013. Present prices are 5% ($11k) above the long term P/FI trend.

    Realty Bubble Monitor: