August 28th, 2012 Release of the S&P Case Shiller Index shows positive growth in national home prices on the Composite 10 and Composite 20 Index. The Composite 20 posted a 2.3% gain in home prices from May / June and Minneapolis, MN posted a 4.8% gain in home prices from May / June.
The National Composite rose by 6.9% in the second quarter alone, and is up 1.2% from the same quarter
of 2011. The 10- and 20-City Composites closely mimic these results; the 10-City was up 5.8% over the
quarter and the 20-City was up 6.0%. The two Composites also entered positive territory on an annual
basis, up 0.1% and 0.5%, respectively.
I still need a visual to see what this really means… The Twin Cities is certainly on the right path in the housing market correction, but how much further do we have to go? The below graph shows Minneapolis vs the Composite 20. I like to see Minneapolis below the Composite 20, it is an indication of more affordable housing. The last time the Twin Cities was at 118 on the index was Nov 2010, hardly a great market then. Pre-bubble Minneapolis saw 119 on the index in June 2001. It is a bit early to say if this just another “bounce” off the bottom or if this is the real deal. I need to see more evidence in the job market recovery which is struggling to say the least, there could also be troubles coming from Europe putting the economy back into recession.