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Housing Price Bubble Housing price trends in US are usually measured by an indicator known as the Case-Shiller index Index constructed from repeated sales.

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Presentation on theme: "Housing Price Bubble Housing price trends in US are usually measured by an indicator known as the Case-Shiller index Index constructed from repeated sales."— Presentation transcript:

1 Housing Price Bubble Housing price trends in US are usually measured by an indicator known as the Case-Shiller index Index constructed from repeated sales of single family homes Data from a sample of 20 metropolitan areas goes back to year 2000 Data from a subsample of 10 metropolitan areas goes back to 1987

2 From 1987 to 2000 housing prices in the urban areas rose 2% per year From 2000 to 2006 prices were increasing at a rate of 13% a year Average housing prices doubled over the sample of urban areas from 2000 to 2006

3 From 2006 through 2009, housing prices have fell roughly 11.5% per year Prices began to rise in 2012

4

5 Metropolitan Areas with largest housing decline over 2007-2008 Metro Area October 2008 Price Index Year-over-Year change Phoenix135.18-32.70% Las Vegas142.57-31.70% San Francisco139.44-31.00% Miami173.42-29.00% Los Angeles179.82-27.90% San Diego159.12-26.70% Detroit86.1-20.40%

6 Metropolitan Areas 2008-2009 Metro Area October 2009 Price Index Year-over-Year Change Phoenix 110.71-18.10% Las Vegas 104.70-26.65% San Francisco 135.81-2.60% Miami 149.09-14.03% Los Angeles 168.43-6.33% San Diego 155.37-2.36% Detroit 73.07-15.13%

7 Metropolitan Areas 2009-2010 Metro Area October 2010 Price Index Year-over-Year Change Phoenix 105.97-4.28% Las Vegas 100.97-3.57% San Francisco 138.842.23% Miami 144.03-3.39% Los Angeles 174.053.34% San Diego 159.992.97% Detroit 68.86-5.52%

8 Metropolitan Areas 2010-2011 Metro Area October 2011 Price Index Year-over-Year Change Phoenix 100.54-5.12% Las Vegas 92.36-8.53% San Francisco 132.34-4.68% Miami 138.20-4.22% Los Angeles 165.51-5.16% San Diego 152.86-4.66% Detroit 72.825.44%

9 Metropolitan Areas 2011-2012 Metro Area October 2012 Price Index Year-over-Year Change Phoenix 122.3921.73% Las Vegas 100.148.42% San Francisco 144.158.92% Miami 149.978.52% Los Angeles 175.856.25% San Diego 162.106.04% Detroit 80.8211.02%

10 Metropolitan Areas 2012-2013 Metro Area October 2013 Price Index Year-over-Year Change Phoenix 144.4918.06% Las Vegas 127.2327.05% San Francisco 179.5524.56% Miami 173.6315.77% Los Angeles 214.6522.06% San Diego 194.0719.72% Detroit 94.7717.26%


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