The S&P Case-Shiller index showed the biggest year-over-year gains in prices since 2006. The index measures the 20 largest markets in the nation each January and has posted the change in home prices each year above. Since the housing bubble burst in January of 2006, home prices have continued to decrease, with the lowest rates in January of 2009. Since then we have seen growth, but have yet to be back in positive gains until this year. With 12% of growth from 2012 to 2013, it is clear that the market has turned the corner and we will continue to see price appreciation in the future. Some of the largest gains can be seen in areas hurt most by the housing bubble burst, led by a 23.3% gains in Phoenix, with greater than 10% growth in eight cities including formerly foreclosure-ridden cities like Detroit, Las Vegas and Miami.
We see a similar pattern reflected in Wisconsin home prices. With volatile shifts in the market, we saw a price difference of over 39% from 2009 to 2010, only for prices to decrease again in 2011. With double digit growth over the past two years, it is finally safe to say the housing market has recovered and will continue to grow this year. For more in-depth analysis of how much growth will increase, read our segment “Market Analysts Revise 2013 Projections” in this newsletter.