According to the April 2012 S&P/Case-Shiller Home Price Index, single-family home prices in the San Francisco MSA rose 3.4% from March 2012 to April 2012, down 1.4% year-over-year, down 40.4% from a peak in May 2006.
For the broader 10-City composite (CSXR), home values rose 1.2% from March to April, down 2.7% year-over-year, down 34.4% from a June 2006 peak.
On a monthly basis, 19 of the 20 MSAs and both Composites rose in April over March. Detroit was the only city that saw prices fall, down 3.6%. In addition, 18 of the 20 MSAs and both Composites saw better annual rates of return. It has been a long time since we enjoyed such broadbased gains. While one month does not make a trend, particularly during seasonally strong buying months, the combination of rising positive monthly index levels and improving annual returns is a good sign.
On a month-over-month basis, prices rose across all three San Francisco price tiers.
The bottom third (under $309,291 at the time of acquisition) gained 1.3% from March to April (down 1.6% YOY); the middle third gained 2.1% from March to April (down 0.8% YOY); and the top third (over $556,183 at the time of acquisition) gained 3.1% from March to April, up 0.5% year-over-year, the first YOY gain in seventeen months.
According to the Index, single-family home values for the bottom third of the market in the San Francisco MSA are back to April 2000 levels having fallen 60% from a peak in August 2006, the middle third is back to February 2002 levels having fallen 41% from a peak in May 2006, and the top third is back to January 2004 levels having fallen 25% from a peak in August 2007.
Condo values in the San Francisco MSA jumped 5.5% from March to April but remain down 2.2% year-over-year, down 32.8% from a December 2005 peak.
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).
∙ S&P/Case-Shiller: Home Prices Rise in April 2012 [Standard & Poor’s]
∙ S&P/Case-Shiller San Francisco: Condo Prices Jumped In March [SocketSite]