News Releases
Sun Belt Leads Growth of U.S. Housing Prices
S&P Case-Shiller Home Price Index up for 10th straight month
CHIGCAO (January 29, 2013) – The continuing rise of U.S. home prices should provide support for consumer confidence in coming months, according to a commentary by BMO Economics. The S&P Case-Shiller home price index rose 0.6 per cent in November, or 5.5 per cent above levels seen a year ago.
“The Index has risen for ten consecutive months, with the 20 largest metropolitan areas seeing prices increase at the quickest pace in over six years,” said Jennifer Lee, Senior Economist, BMO Capital Markets. “Fundamental factors – such as still low borrowing costs, job growth and affordability – are supporting the increases; foreign-buying, particularly in the Sun Belt regions, is a likely factor as well.”
Prices rose on a seasonally-adjusted basis in November – compared to the previous month – in 18 of the 20 cities observed in the Index. “Phoenix prices are up 22.8 per cent from a year ago – by far the largest gain of all the metropolitan areas in the Index,” noted Ms. Lee. “Areas such as Las Vegas, L.A., Miami, San Francisco, San Diego and Tampa, where high foreclosures weighed heavily on home prices, have enjoyed a pickup in values for the last 9 to 10 months. As well, Chicago has now snapped a str eak of three monthly losses.”
S&P/Case-Shiller Home Price Indices
| Metropolitan Area | % change, Nov/Oct (SA) | % change, 1-year |
|---|---|---|
| Atlanta | 1.6 | 7.6 |
| Boston | 0.1 | 2.3 |
| Charlotte | 0.3 | 5.1 |
| Chicago | 0.1 | 0.8 |
| Cleveland | 0.0 | 1.8 |
| Dallas | 0.8 | 5.7 |
| Denver | 1.1 | 7.8 |
| Detroit | 1.0 | 11.9 |
| Las Vegas | 1.0 | 10.0 |
| Los Angeles | 0.8 | 7.7 |
| Miami | 0.7 | 9.9 |
| Minneapolis | 1.9 | 11.1 |
| New York | -0.3 | -1.2 |
| Phoenix | 1.5 | 22.8 |
| Portland | 0.6 | 6.7 |
| San Diego | 1.5 | 8.0 |
| San Francisco | 2.5 | 12.7 |
| Seattle | 1.1 | 7.4 |
| Tampa | 0.4 | 6.8 |
| Washington | 0.3 | 4.4 |
About BMO Harris Bank
Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank’s commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris BankSM is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organi zation with 1,600 branches, and a retail deposit base of approximately $180 billion.
Beth Copeland, (317) 269-1395 beth.copeland@bmo.com
