According to the August 2010 S&P/Case-Shiller Home Price Index, single-family home prices in the San Francisco MSA fell 0.3% from July ’10 to August ’10, down 34.6% from a peak in May 2006 and up 7.8% year-over-year (YOY) versus a 11.2% YOY gain reported in July and 14.3% in June.
For the broader 10-City composite (CSXR), home values fell a nominal 0.1% from July to August and remain down 28.3% from a peak in June 2006 as the year-over-year gain slipped to 2.6%.
“A disappointing report. Home prices broadly declined in August. Seventeen of the 20 cities and both Composites saw a weakening in year-over-year figures, as compared to July, indicating that the housing market continues to bounce along the recent lows,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “Over the last four months both the 10- and 20-City Composites show slowing growth, after sustaining consistent gains since their April 2009 troughs.
“The month-over-month growth rates tell the same story. Fifteen of the 20 MSAs and the two Composites saw a decline in the month of August as compared to July levels. The 10- and 20-City Composites fell 0.1% and 0.2%, respectively. Indeed, the housing market appears to have stabilized at new lows. At this time, it does not seem that any of the markets are hanging on to the temporary momentum caused by the homebuyers’ tax credits.”
Prices fell across all three price tiers on a month-over-month basis for single-family homes in the San Francisco MSA for the first time in six months as year-over-year gains also slid.
The bottom third (under $345,613 at the time of acquisition) fell 1.4% from July to August (up 10.3% YOY); the middle third fell 1.2% from July to August (up 6.3% YOY); and the top third (over $628,381 at the time of acquisition) fell 0.5% from July to August (up 2.1% YOY versus 2.8% in July).
According to the Index, single-family home values for the bottom third of the market in the San Francisco MSA returned to October 2000 levels having fallen 56% from a peak in August 2006, the middle third is back to just below April 2003 levels having fallen 34% from a peak in May 2006, and the top third is back to just below April 2004 levels having fallen 23% from a peak in August 2007.
Condo values in the San Francisco MSA fell 0.5% from July ’10 to August ’10 and to a 2.0% gain on a year-over-year basis (down 26.4% from a high in December 2005).
Our standard SocketSite S&P/Case-Shiller footnote: The S&P/Case-Shiller home price indices include San Francisco, San Mateo, Marin, Contra Costa, and Alameda in the “San Francisco” index (i.e., greater MSA) and are imperfect in factoring out changes in property values due to improvements versus appreciation (although they try their best).
∙ Home Prices Increases Slow Down in August [Standard & Poor’s]
∙ July Case-Shiller: “San Francisco’s” Top Tier Slips For Second Month [SocketSite]