housing price bubble
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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 of single family homes Data from a sample of 20 metropolitan areas goes back to year 2000 - PowerPoint PPT PresentationTRANSCRIPT
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
• 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
•From 2006 through 2009, housing prices have fell roughly 11.5% per year
•Prices began to rise in 2012
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Trend in Housing Prices 1987-2013
Year
Ho
us
ing
Pri
ce
In
de
x
Metropolitan Areas with largest housing decline over 2007-2008
Metro Area October 2008 Price Index
Year-over-Year change
Phoenix 135.18 -32.70%
Las Vegas 142.57 -31.70%
San Francisco 139.44 -31.00%
Miami 173.42 -29.00%
Los Angeles 179.82 -27.90%
San Diego 159.12 -26.70%
Detroit 86.1 -20.40%
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%
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 138.84 2.23%Miami 144.03 -3.39%Los Angeles 174.05 3.34%San Diego 159.99 2.97%Detroit 68.86 -5.52%
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 72.82 5.44%
Metropolitan Areas 2011-2012
Metro Area October 2012 Price Index
Year-over-Year Change
Phoenix 122.39 21.73%Las Vegas 100.14 8.42%San Francisco 144.15 8.92%Miami 149.97 8.52%Los Angeles 175.85 6.25%San Diego 162.10 6.04%Detroit 80.82 11.02%
Metropolitan Areas 2012-2013
Metro Area October 2013 Price Index
Year-over-Year Change
Phoenix 144.49 18.06%Las Vegas 127.23 27.05%San Francisco 179.55 24.56%Miami 173.63 15.77%Los Angeles 214.65 22.06%San Diego 194.07 19.72%Detroit 94.77 17.26%