Housing Prices

“Well, real estate is always good, as far as I’m concerned.” Donald Trump

Fluctuation in Housing Prices Vary Widely 

While there are many considerations taken when considering the purchase of a new home, another factor you might take into account is the S&P/Case-Shiller Home Price Index. These indices track changes in residential real estate value for 20 major U.S. metropolitan regions by measuring changes in home prices within a given market.  According to the Standard & Poors FAQ found on their website, “The indices are designed to be a reliable and consistent benchmark of housing prices in the United States.” 

Does That Include Active Adult Community Prices

Well, that depends. The Index is meant to measure residential real estate value in a variety of regions throughout the U.S., but the algorithm used to determine the index results is somewhat complicated and excludes certain types of housing. New construction, condominiums, and co-ops, for example, are excluded from the calculations.

Since many active adult communities often fall into the new construction category and therefore have no reported re-sale history, many of these homes will not yet be included. Whether or not the Case-Shuller index would affect active adult and retirement community home values in your area of interest might be a good question to discuss with a real estate professional.

Most Recent Index Report Not Encouraging

According to the newest (10/30) release of the Case-Shiller Index, most of the nation’s markets included in the finding continue to show home prices falling. “The fall in home prices is showing no real signs of a slowdown or turnaround,” stated Robert J. Shiller, chief economist for MacroMarkets LLC and co-creator of the Case-Shiller index.

Below are the changes cited in the newly-released S&P/Case-Shiller index (taken in Aug) for single-family homes over one year prior.

5 Cities With Rising Prices:

  1. Seattle: 5.7
  2. Charlotte: 5.6
  3. Portland: 2.8
  4. Atlanta: 0.8
  5. Dallas: 0.5

15 Cities With Falling Prices:

  1. Tampa: -10.1
  2. Detroit: -9.3
  3. San Diego: -8.3
  4. Phoenix: -8.0
  5. Miami: -7.8
  6. Las Vegas: -7.6
  7. Washington, D.C.: -7.2
  8. Los Angeles: -5.7
  9. San Francisco: – 4.2
  10. Cleveland: -4.1
  11. Minneapolis: -4.0
  12. New York: -3.8
  13. Boston: -3.6
  14. Chicago: 1.3
  15. Denver: -0.4

**For an easy-to-use clickable map of the US with one of the largest directories of active adult and retirement communities available, visit the PlannedSeniorhood website.

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