Case-Shiller: DC Home Prices Increase 4.3%

• May 31st 2011

by UrbanTurf Staff

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Nationally, home prices fell 4.2 percent in the first quarter of 2011, according to the latest Case-Shiller report released this morning. However, the index reported that home prices in the DC area increased on both a monthly (+1.1%) and annual (+4.3%) basis.

As home prices in the rest of the country continue to fall, the DC area (as defined by the index) continues to move in the other direction. Between February 2011 and March 2011, area prices increased slightly in each price tier measured by the index: the low tier (under $293,756), the middle tier (homes between $293,756 and $457,827) and the high tier (above $457,827).

“The S&P/Case-Shiller Index captures the housing market conditions of 5 to 7 months ago and at the end of last year we were still reeling from the post-tax credit market withdrawal” housing market guru Jonathan Miller told UrbanTurf. “Not much has improved on the housing front nationally, with high unemployment, bloated foreclosure stock and tight credit. However, the index remains the benchmark for housing confidence. DC continues to lead the country, lifted by a better employment picture than most of urban centers around the country and that seems to be the differentiating factor.”

One thing that is important to note about the Case-Shiller index is that it only covers single-family home prices, so co-op and condo prices are not included in the analysis. This means that in places like DC, Chicago and New York City (where condos/co-ops are prevalent), the index does not offer the most accurate picture of housing prices.

Positive news for the DC area notwithstanding, this morning’s report offered a bleak assessment of home prices across the country. From David M. Blitzer, Chairman of the Index Committee at S&P Indices:

“The National Index, the 20-City Composite and 12 MSAs all hit new lows with data reported through March 2011. The National Index fell 4.2% over the first quarter alone, and is down 5.1% compared to its year-ago level.”

This article originally published at https://dc.urbanturf.com/articles/blog/case_shiller_dc_home_prices_increase_4_3_percent/3575.