S&P/Case-Shiller: Home Prices Closed Out a Strong 2012

Data through December 2012, released today by S&P Dow Jones Indices for its
S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home
prices, showed that all three headline composites ended the year with strong
gains. The national composite posted an increase of 7.3 percent for 2012. The
10- and 20-City Composites reported annual returns of 5.9 percent and 6.8 percent
in 2012. Month over- month, both the 10- and 20-City Composites moved into
positive territory with gains of 0.2%; more than reversing last month's losses.



In addition to the three composites, nineteen of the 20 MSAs posted positive
year-over-year growth - only New York fell.



The S&P/Case-Shiller U.S. National Home Price Index, which covers all nine
U.S. census divisions, recorded a 7.3 percent gain in the fourth quarter of
2012 over the fourth quarter of 2011. In December 2012, the 10- and 20-City
Composites posted annual increases of 5.9 percent and 6.8 percent,
respectively.



"Home prices ended 2012 with solid gains," says David M. Blitzer, Chairman of
the Index Committee at S&P Dow Jones Indices. "Housing and residential
construction led the economy in the 2012 fourth quarter.



In December's report all three headline composites and 19 of the 20 cities
gained over their levels of a year ago. Month-over-month, 9 cities and both
Composites posted positive monthly gains. Seasonally adjusted, there were no monthly
declines across all 20 cities.



"The National Composite increased 7.3 percent over the four quarters of 2012.
From its low in the first quarter, it surged in the second and third quarter
and slipped slightly in the 2012 fourth period. The 10- and 20-City Composites,
which bottomed out in March 2012 continued to show both year-over-year and
monthly gains in December. These movements, combined with other housing data,
suggest that while housing is on the upswing some of the strongest numbers may
have already been seen.



"Atlanta and Detroit posted their biggest year-over-year increases of 9.9
percent and 13.6 percent since the start of their indices in January 1991.
Dallas, Denver, and Minneapolis recorded their largest annual increases since
2001. Phoenix continued its climb, posting an impressive year-over-year return
of 23.0 percent; it posted eight consecutive months of double-digit annual
growth."



As of December 2012, average home prices across the United States for the
10-City and 20-City Composites are back to their autumn 2003 levels. Measured
from their June/July 2006 peaks, the decline for both Composites is
approximately 30 percent through December 2012. For both Composites, the
December 2012 levels are approximately 8-9 percent above their recent lows seen
in March 2012.



In December 2012, nine MSAs and both Composites posted positive monthly gains,
led by Las Vegas with an increase of 1.8 percent. Eleven cities declined with
Chicago posting the largest negative monthly return of 0.7 percent.



Atlanta and Detroit remain the only three cities with average home prices below
their January 2000 levels. Detroit with an 80.04 print is 20 percent below its
January 2000 level.



"The high end of the market is doing well and while it's a fashionable thing to
say that it is because of foreign money, I suspect the actual reason is that
the one percent have gotten 122 percent of the recovery," says USC Lusk Center
for Real Estate Director, Richard Green. "Since the low end of the market is
being targeted by investors, it's the middle market that needs help -
particularly in the form of higher income - if it is going to have a sustained
recovery."



For more information, visit www.homeprice.standardandpoors.com.

Janet & Graham Ford
Phone: (918) 798-4428
4105 S. Rockford Ave
Tulsa, OK 74105
www.janetford.com
info@janetford.com