Portland home prices rose 13.3% for the year ending February 2014. A hefty and welcome climb for homeowners waiting for market gains in order to sell their homes at a profit.
But that crescendo is now plateauing, which corresponds to a levelling off across the rest of the country.
S&P/Case-Shiller Indices measure the value of residential real estate in major metropolitan areas across the U.S. These numbers are included in the S&P/Case-Shiller Home Price Index Series, which measures changes in the total value of all existing single-family housing stock.
According to David Blitzer, chairman of the index committee, “The S&P/Case-Shiller Home Price Index ended its best year since 2005. However, gains are slowing from month-to-month, and the strongest part of the recovery in home values may be over. Despite continued price gains, most other housing statistics are weak. Sales of both new and existing homes are flat to down. The recovery in housing starts, now less than one million units at annual rates, is faltering. Moreover, home prices nationally have not made it back to 2005.”
Mortgage interest rates, which jumped in May 2013, are blamed by some analysts for the weakness in the home market. Difficulty qualifying for loans and concern about consumer confidence are also cited. The result is less demand and fewer homes being built.
Meanwhile, in Portlandia, we see new residential construction projects everywhere we look, a hopeful sign of continuing recovery.
And now, for a few interesting data points:
Annualized U.S. Home Prices as of February 2014
The 10-City Composite increased 13.1%.
- The 20-City Composite increased 12.9%.
- Las Vegas came in first with a 23.1% increase.
- San Francisco came in second with a 22.7% increase.
- Cleveland came in last with a 3% increase.
- All 20 cities in the index posted increases.
Annualized Portland Home Prices as of February 2014
- Average Portland home prices increased 13.3%.
- Average Portland home prices increased only 0.8% over January 2014.
- Average Portland home prices narrowly beat the broader 20-City Composite, with an increase of 12.9%.
Annualized Home Price Comparisons as of February 2014
- Average U.S. home prices are equal to their mid-2004 levels.
- Average U.S. home prices are 23% above their March 2012 lows.
- Average U.S. home prices are 20% below their June/July 2006 highs.
- Average Portland home prices are 14% below their July 2007 highs.
Portland Average and Medium Home Prices on the Rise
- Average Portland home price for 2013 was $310,600, an increase of 12.9% over 2012 average home price of $275,000.
- Median Portland home price for 2013 was $265,000, an increase of 12.8% over 2012 home price of 235,000.
- Average Portland home price for Q1 2014 was $322,700.
- Portland Business Journal: Case-Shiller Closes the Books in 2013
- Portland Business Journal: Case-Shiller: Home Prices Still in Double-Digit Growth Territory Despite Winter Slowdown
- Portland Business Journal: Case-Shiller: Portland Home Prices Continue to Climb
- Portland Business Journal: Where Will Portland Home Prices Go in 2014?
- S&P Dow Jones Indices: Home Prices Defy Weak Sales Numbers According to the S&P/Case Shiller Home Price Indices
- S&P/Case-Shiller Portland Home Price Index