Today, Standard & Poor’s (S&P) released January 2016 values for its Case-Shiller Home Price Index, which tracks the prices of existing single-family homes in 20 U.S. metro areas. The index in each metropolitan area extends from a base value of 100 in January 2000. For example, Chicago’s January 2016 index value was 129.25 before seasonal adjustment; this translates to a 29.25 percent appreciation since January 2000 for a typical home in the Chicago market.
- All 20 cities tracked and both composite indices showed positive year-over-year returns. In Chicago, the index increased 2.1 percent from 126.56 in January 2015 to 129.25 in January 2016. This is similar to last month’s YOY growth rate of 2.3 percent.
- Chicago was among eight cities that experienced negative monthly rates of change. Chicago’s January 2016 home price level decreased by 0.38 percent from the previous month, also falling behind the 10-City and 20-City Composites’ respective -0.04 and -0.02 percent growth rates.
- In a press release, Standard & Poor’s Index Committee Chairman David M. Blitzer observed that, “Home prices continue to climb at more than twice the rate of inflation. The low inventory of homes for sale — currently about a five month supply – means that would-be sellers seeking to trade-up are having a hard time finding a new, larger home.”
Source: S&P/Case-Shiller Home Price Indices
Note: The full press release and additional data can be found on the S&P website. Values reflect non-seasonally adjusted data, which are typically more appropriate for annual comparisons than monthly ones; however, due to heightened volatility in recent housing values that can skew the seasonal adjustments, S&P recommends using the non-seasonally adjusted numbers, even for month-to-month comparisons.
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