Home Prices Up, Down in February, Depending on Where You Look

Urban centers offer plenty of perks not found in less populated portions of the country, but improving home prices aren’t included in that list, according to the latest numbers from the S&P/Case-Shiller Home Price Indices and the Federal Housing Finance Agency’s (FHFA) House Price Index. While home prices on a national level gained 0.3% on a seasonally adjusted annual basis between January and February, the S&P/Case-Shiller 10- and 20-city composite indices both hit new post-crisis lows in February, as did nine metro statistical areas (MSAs). The 10-city was down 3.6%, and the 20-city declined 3.5% compared to the previous year. The divide between the two reports stems from differences in data collections: While FHFA’s index represents only purchase prices on homes with mortgages either held or guaranteed by Fannie Mae and Freddie Mac—a segment in better shape than mortgages overall—Case-Shiller’s numbers include all transactions in the 20 MSAs covered, including those with subprime and other riskier loans. Case-Shiller’s news wasn’t all bad. Both composites and 15 MSAs showed improved annual returns compared to January. Five MSAs managed to post positive year-over-year numbers, including Denver, Detroit, Miami, Minneapolis, and Phoenix. However, Atlanta, Charlotte, N.C., Chicago, Cleveland, Las Vegas, New York, Portland, Ore., Seattle, and Tampa, Fla., all posted new post-bust lows.

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