Boston area prices dipped by 1.4 percent in October, but are up 1.6 percent year-over-year.
Thomas Grillo
Real Estate Editor- Boston Business Journal
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U.S. home prices fell 0.1 percent in 20 of the nation’s largest cities in October compared to September, but Boston area prices dipped by 1.4 percent, according to the SP/Case-Shiller Home Price Index.
The October numbers were weaker than September in 12 of 20 cities surveyed by Case-Shiller. Among the 20 cities studied, Chicago was the weakest with prices dropping 1.5 percent, followed by Boston. Researchers said anticipated seasonal weakness appeared to contribute to the lower home prices. Las Vegas was the exception ,as the city saw the strongest one-month gain with prices up 2.8 percent.
Still, there is some good news for Boston area homeowners. In the 12 months ending in October, Hub prices were up 1.6 percent. That’s not as good as the national average of 4.3 percent — out-distancing analysts’ forecasts. The strongest year-end gains came in Phoenix where prices swelled by nearly 22 percent and in Detroit as prices increased by 10 percent. In the 12 month average, Chicago fared the worst with prices down 1.3 percent followed by New York where prices slipped by 1.2 percent.
David M. Blitzer, chairman of the Index Committee at SP Dow Jones Indices, said annual rates of change in home prices are a better indicator of the performance of the housing market than the month-over-month changes because home prices tend to be lower in fall and winter than in spring and summer.
“…Considering other data on housing starts and sales, it is clear that the housing recovery is gathering strength,” said Blitzer in a statement. “Higher year-over-year price gains plus strong performances in the southwest and California, regions that suffered during the housing bust, confirm that housing is now contributing to the economy.”
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