San Francisco home prices ticked up in February and condo values jumped according to the latest S&P/Case-Shiller Home Price Index. According to the Index, single-family home prices in the San Francisco MSA rose 0.5% from January to February 2013. Up 18.9% year-over-year, the San Francisco Index remains 32.1% below a May 2006 peak.
For the broader 10-City composite (CSXR), home values gained 0.3% from January to February 2013, up 8.4% year-over-year, 29.9% below a June 2006 peak.
Phoenix, San Francisco, Las Vegas and Atlanta were the four cities with the highest year-over-year price increases. Atlanta recovered from a wave of foreclosures in 2012 while the other three were among the hardest hit in the housing collapse. At the other end of the rankings, three older cities – New York, Boston and Chicago – saw the smallest year-over-year price improvements.
Despite some recent mixed economic reports for March, housing continues to be one of the brighter spots in the economy. The 2013 first quarter GDP report shows that residential investment accelerated from the 2012 fourth quarter and made a positive contribution to growth. One open question is the mix of single family and apartments; housing starts data show a larger than usual share is apartments.
On a month-over-month basis, prices rose across all three San Francisco price tiers.
The bottom third (under $384,759 at the time of acquisition) gained 0.6% from January to February (up 21.6% YOY); the middle third gained 1.8% from January to February (up 18.8% YOY); and the top third (over $677,427 at the time of acquisition) gained 0.6% from January to February, up 12.9% year-over-year versus up 10.8% in January.
According to the Index, single-family home values for the bottom third of the market in the San Francisco MSA are back to February 2001 levels (52% below an August 2006 peak); the middle third is back to July 2003 levels (32% below a May 2006 peak); and the top third is back to May 2004 levels, 20% below an August 2007 peak.
Condo values in the San Francisco MSA jumped 2.3% from January to February 2013 and are up 28.1% year-over-year but remain 21.7% below 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 February 2013 [Standard & Poor’s]
∙ Following A Strong 2012, SF Home Prices Moderate Entering 2013 [SocketSite]
∙ Single-Family Housing Starts Slip But Multi-Family Starts Surge [SocketSite]