On Tuesday, November 29, 2016, the S&P CoreLogic Case-Shiller Home Price Index was released for the month of September, 2016. The index measures home prices through two indices, the 20-home index and the 10-home index. The 20-home index measures home prices in the following cities: Phoenix, Los Angles, San Diego, San Francisco, Denver, Washington, DC, Miami, Tampa, Atlanta, Chicago, Boston, Detroit, Minneapolis, Charlotte, Las Vegas, New York, Cleveland, Portland, Dallas, and Seattle. Nationally, as of September, 2016, the value of home prices has now exceeded the “pre-great-recession” peak. Home prices began falling July, 2006 and fell year-over-year until March, 2012, just shy of six years. It has taken approximately four and a half years for home prices to recover from the March, 2012 trough, nationally.
In terms of Atlanta, Georgia, home values peaked in July, 2007, a year later than they peaked nationally, and fell through March, 2012. The fall in home prices in Atlanta totaled a 39.52% decrease. Atlanta home prices have now increased, as of September, 2016, 41.24%, surpassing the pre-crisis peak value. A combination of factors are responsible for the price increase, notably, ultra-low interest rates and low housing supply, among others.
It appears that favorable conditions will persist, but with an expectation of a rise in interest rates, time will tell how strong home prices will continue to increase going forward. Nevertheless, negative equity situations are seemingly gone and those underwater can begin to feel the release of such financial strain.
The housing crash is finally behind us, and everyone can look ahead for a relatively bright future regardless of what housing opportunities they seek.
Craig Long, LLC is a law firm that practices real property law in Georgia. The firm has closed approximately 4,000 real estate transactions since its founding in 2004, totaling approximately a billion dollars in value. The firm’s office is located in North Atlanta, but has a state-wide practice handling closings, foreclosures, real estate litigation, zoning, and tax lien matters, among other matters.