The August 2011 Case-Shiller Index was released this week. On an monthly basis, 10 of 20 tracked markets worsened. On an annual basis, valuation degradation was worse.

Only Detroit and Washington, D.C. posted higher home values in August 2011 as compared to August 2010, rising 2.7% and 0.3%, respectively.

However, the index has been moving in the right direction. Since bottoming out in March of this year, the Case-Shiller Index is up nearly 4 percent.

As home buyers and sellers , though, we have to remember that the Case-Shiller Index is a flawed product; its methodology too narrow to be the final word for housing markets.

The Case-Shiller Index has 3 main flaws.

The first Case-Shiller Index flaw is its relatively small sample size. Although it’s positioned as a national housing index, Case-Shiller data represents just 20 cities nationwide, and they’re not even the 20 most populous U.S. cities. For example, cities like Houston (#4), Philadelphia (#5), San Antonio (#7) and San Jose (#10) are excluded from the Case-Shiller Index findings.

By contrast, Minneapolis (#48) and Tampa (#55) make the list.

A second Case-Shiller Index flaw is the way in which it measures home price changes. The Case-Shiller Index formula ignores all home sales except for “repeat sales” of the same home. New homes don’t count for the Case-Shiller Index. Furthermore, the index ignores condominium and multi-family home sales, too.

In some cities, condos can account for a large percentage of sales.

And the third Case-Shiller Index flaw is that the data is reported on a 2-month lag. Next week marks the start of November, yet we’re still discussing data from August. A lot can change in two months (and it often does). Today’s market conditions are similar to — but not the same as — market conditions from before Labor Day.

The Case-Shiller Index is far from “real-time”.

As a monthly release, the Case-Shiller Index does more to help people with a long-term view of housing, including politicians and economists, than it does for everyday buyers and sellers who negotiate prices based on current demand and supply.

A real estate agent can tell you which homes have sold in the last 7 days, and at what prices. The Case-Shiller Index cannot.

• August 2011 real estate search results are in and Colorado Springs, CO was the #50 most searched market in the country in August 2011, based on data released today by Realtor.com.
• Median list prices for homes in Colorado Springs, CO hit $222,000 in August 2011, a 4.59% increase from one year ago this month, and 0.46% increase from July 2011.
  The national median list price in August 2011 was$189,900, a 0.48% increase compared to August 2010.
• Active for sale inventory of homes in Colorado Springs, CO in August 2011 leveled out at 4,867, a -21.45% decrease compared to August 2010.
  National inventory counts for August 2011 were 2,267,327, a -19.00% decrease as compared to a year ago.
• The median age of inventory in Colorado Springs, CO in August was 86 days, a 2.38% increase compared to July 2011.
  Nationally, the median age of inventory was 103 days, a 6.19% increase compared to July.

For details on all 146 MSAs monitored by Realtor.com in August 2011, click here: http://www.realtor.com/data-portal/Real-Estate-Statistics.aspx

Comments:

Colorado Springs saw a significant rise in home sale prices and decrease in inventory over the past year. I attribute this to the low interest rates, allowing more home buyers to qualify for a mortgage.

For more information on buying a home in the Colorado Springs real estate market,
please contact the Wagner iTeam at (719) 434-8346

CNNMoney recently released its Best Places To Live 2011 list.

The annual survey is based on data from Onboard Informatics. Using Quality of Life factors such as education, crime and “town spirit”, and focusing on towns with between 8,500 and 50,000 residents, the CNNMoney survey ranks the country’s best “small towns”.

To be eligible, towns must be have a median household income greater than 85 percent, and less than 200 percent of the state median income; must not be a categorized as a “retirement community”; and must be racially-diverse.

From a list of 3,570 eligible towns nationwide, Louisville, Colorado was ranked #1.

The complete Top 10 Best Places to Live as cited by CNNMoney, and their respective average home listing prices :

1. Louisville, Colorado ($383,569)
2. Milton, Massachusetts ($577,008)
3. Solon, Ohio ($291,162)
4. Leesburg, Virginia ($486,018)
5. Papillion, Nebraska ($218,520)
6. Hanover, New Hampshire ($643,500)
7. Liberty, Missouri ($177,678)
8. Middleton, Wisconsin ($347,770)
9. Mukilteo, Washington ($345,487)
10. Chanhassen, Minnesota ($418,607)

Rankings like these can be helpful to home buyers nationwide, but it’s important to remember that the Best Place To Live survey is subjective. You may find none of the above towns to be to your liking.

You may also find the lowest-ranked city to be your favorite.

In other words, before making a decision to buy, connect with a real estate agent who has local market knowledge. That’s the best, most reliable way to make sure you get the housing data that matters to you.

Louisville ranked #1 for its low crime rate, availablility of diverse jobs, abundance of outdoor activities, low sales tax (2.9%) and steady real estate market. Colorado Springs was not included in this study, as it is not considered a “small town”, but Black Forest (an area within Colorado Springs and Monument) was included and made #66!

But even given the size difference, how does Colorado Springs compare with the #1 city, Louisville?

• Colorado Springs actually has a higher job growth, at 9.6%, compared to Louisville at 3.7%.
• The median home sales price in the Colorado Springs real estate market is $179,500, compared to Louisville’s at $342,000.
• Colorado Springs median income is about $30k less than Louisville’s.
• Colorado Springs has a higher crime rate but also has a higher air quality.
• Colorado Springs and Louisville get to enjoy the same awesome Colorado weather and low sales tax.

For more information on living in Colorado Springs,
please contact the Wagner iTeam: (719) 434-8346

For the 9th straight month last month, foreclosure activity slowed.

According to foreclosure-tracking firm RealtyTrac, the number of foreclosure filings dropped 29 percent nationwide on an annual basis in June. The phrase “foreclosure filing” is a catch-all term, comprising default notices, scheduled auctions, and bank repossessions.

June marked the ninth consecutive month of sub-300,000 filings after 20 months above it – a promising signal for the housing market nationwide.

It’s also noteworthy that each of the 10 most foreclosure-heavy states showed fewer foreclosures in June 2011 as compared to June 2010, led by Florida’s 54% decline. Florida is one of 4 states on the leading edge of foreclosure activity since 2007.

The other 3 states performed similarly well in June:

• California : -22% on an annual basis
• Arizona : -7% on an annual basis
• Michigan : -25% on an annual basis

The decrease in foreclosure filings comes at a time when buyer demand is highest. According to the National Association of REALTORS®, “distressed properties” account for more than 30 percent of all home resales and no wonder — homes in various stages of foreclosure or sold by short sale are selling with discounts of 20 percent versus comparable non-distressed homes.

For buyers in search of foreclosures , talk with a licensed real estate. Buying homes in foreclosure follows a different process path as compared to buying a “traditional” home. Make sure you seek the help of a professional.

For more information on buying a Colorado Springs Foreclosure,
please contact the Wagner iTeam 719-434-8346