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Data through June 2011, released yesterday by S&P Indices for its S&P/Case-Shiller Home Price Indices, show that the U.S. National Home Price Index increased 3.6 percent in the second quarter of 2011, after having fallen 4.1 percent in the first quarter of 2011. With the second quarter’s data, the National Index recovered from its first quarter low, but still posted an annual decline of 5.9 percent versus the second quarter of 2010. Nationally, home prices are back to their early 2003 levels.

As of June 2011, 19 of the 20 MSAs covered by the Indices and both monthly composites were up versus May – Portland was flat. However, all MSAs were down compared with June 2010. Twelve of the 20 MSAs and both Composites have now increased for three consecutive months, a sign of the seasonal strength in the housing market.

The S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 5.9 percent decline in the second quarter of 2011 compared with the second quarter of 2010. In June, the 10- and 20-City Composites posted annual rates of decline of 3.8% and 4.5%, respectively. Thirteen of the 20 MSAs and both monthly Composites saw their annual growth rates improve, although remaining in negative territory in June.

C.A.R.