Case-Shiller: DC Area Home Prices Rise 4 Percent

• June 28th 2011

by Mark Wellborn

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While the latest Case-Shiller report released this morning showed that home prices fell 4 percent nationally between April 2010 and April 2011, the index reported that home prices in the DC area increased on both a monthly (+3%) and annual (+4%) basis.

Between March 2011 and April 2011, area prices increased in each price tier measured by the index: the low tier (under $293,756), the middle tier (homes between $293,756 and $457,827) and the high tier (above $457,827).

Take the Case Shiller for what it is, though.

As housing market guru Jonathan Miller explained at the end of May, the index is really “a foundation for consumer sentiment on the housing market, not an accurate description of the current housing market.” This is because the index is based on closed sales and home price data from 5 to 7 months ago. Another thing that is important to note about Case-Shiller is that the main index only covers single-family home prices, so co-op and condo prices are not included in the analysis that is widely reported. This means that in places like DC, Chicago and New York City (where condos/co-ops are prevalent), the index does not offer the most accurate picture of housing prices.

A more current picture of the local market came earlier this month, when RealEstate Business Intelligence (RBI), the research arm of Metropolitan Regional Information Systems (MRIS) reported that 5,506 home purchase contracts were signed in the DC area in May, the highest total for this month since 2005. The RBI analysis also reported that the median sales price for May ($353,606) was 5.9 percent higher than April ($334,000) and 3.5 percent higher than the same month last year.

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/case_shiller_dc_home_prices_rise_4_percent/3728.