High-End Home Prices Gain in 12 U.S. Cities, Including Miami
By Prashant Gopal for businessweek.com - January 27, 2010Prices for the most expensive U.S. homes rose in 12 of 17 cities tracked by S&P/Case-Shiller indexes in November, indicating efforts to help first-time homebuyers are also leading to move-up purchases.
Miami, Boston, Phoenix and San Francisco all registered gains at the top end of their markets, according to seasonally adjusted data from S&P Case-Shiller, which produces so-called tiered indexes for 17 cities that divide the housing market into thirds according to price. The bottom third, with the biggest share of first-time buyers and foreclosure purchases, also increased in 12 metro areas.
“It does indicate that this is real demand and not just a statistical aberration,†said Karl Case, a co-creator of the indexes. “The ones coming in and buying are very optimistic about this being a good time to buy.â€
A government tax credit for first-time home buyers due to expire in November helped boost home sales in November, contributing to higher prices in some markets. Foreclosed homes are selling at an average discount of 28 percent compared with similar properties that haven’t been seized by banks, according to Seattle-based real estate data provider Zillow.com, which studied 16 U.S. metropolitan areas.
High-end home prices increased in Atlanta, Boston, Cleveland, Denver, Los Angeles, Miami, Phoenix, Portland, San Diego, San Francisco, Seattle and Washington. The dividing lines between the three segments vary according to the market. For example, in Los Angeles, the top third starts at $495,996. Those houses have gained for six consecutive months, according to S&p/Case-Shiller.
Phoenix high-end homes, defined as above $182,934, have risen for six straight months, and in Miami, prices for homes above $267,424 have climbed for five of the last six months.
The composite index, which combines all three segments, gained in all 20 cities followed on a seasonally adjusted basis.
<== Back
