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S&P/Case-Shiller Index: U.S. Home Prices Increase Q2 2011, Boston Remains One of the Healthiest Markets

National home prices increased 3.6 percent in the second quarter of the year compared to the first quarter, yet were down 5.9 percent compared to the second quarter of 2010, CNNMoney.com reported August 30, 2011.

The gains came after three consecutive quarters of decreasing home prices in the U.S. The data come the S&P/Case-Shiller Index.

The year-over-year price drop of 5.9 percent was larger than expected, with experts forecasting a 4.7 percent decline. Most metropolitan areas across the country saw increased prices month-over-month (1.1 percent nationally), with Boston prices rising 2.4 percent in June.

Karl E. Case, cofounder of the housing index, said the Boston Area continues to be one of the healthiest real estate markets nationwide, The Boston Globe reported August 31, 2011. Even though values here have fallen about 15.3 percent since their peak in September of 2005, that is only about half the decline in values for the 20 cities tracked by the index.

The Boston region’s housing numbers for June represent the third biggest increase in home values for that month nationwide, after Chicago and Minneapolis, according to the index.

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Zillow Reports Boston Area Home Values Fall Q2 2011

Home values in the Boston Area fell 2.8 percent in the second quarter of 2011 compared to Q2 2010, a small drop compared to the national average, Banker & Tradesman reported August 9, 2011.

According to a Zillow.com report, nationally home values dropped 6.2 percent year-over-year (from Q2 2010 to Q2 2011), and have fallen 28.8 percent from the peak of home values in June, 2006. Boston values on the other hand have only dropped 20.6 percent since the peak in 2006, and have actually increased 2.1 percent from the first quarter of this year.

The Zillow report also noted that 11.8 percent of Boston Area homeowners are underwater on their mortgages, meaning their homes are worth less than they owe on their mortgage. Nationally, that number is about 26.8 percent.

Boston Area Home Sales Rise in July 2011

Boston Realtors reported a 13 percent increase in existing home sales in July, a small increase compared to other major metro areas across the country,  the Boston Business Journal reported August 18, 2011.

Miami and St. Paul both saw existing home sales increase by more than 30 percent, (Miami 35.6 and St. Paul 32.5 percent), while Kansas City, Phoenix, Philadelphia, and Atlanta all saw increases over 20 percent.

According to the National Association of Realtors (NAR), nationally, the July housing market set a pace for 4.83 million home sales this year, an increase of 21 percent from the 3.86 million sales in July 2010.

The NAR also stated that Boston’s median home price fell 1.1 percent in July, from $385,000 in July 2010 to $381,000 in July 2011. The national median price also fell, dropping from $183,000 in July 2010 to $174,900 this past July.

Boston Area Home Prices Rise in February

Contrary to national trends, Greater Boston Area home prices increased for the second-consecutive month in February, rising 4.6 percent on a year-over-year basis, according to a pricing analysis report by CoreLogic, the Boston Business Journal reported April 7, 2011.

February’s price increase, which included distressed home sales in the Boston-Quincy metropolitan area, followed January’s price increase of 5.54 percent compared to January 2010. Excluding distressed sales, which include short sales and real estate owned (bank owned) transactions, Greater Boston Area home prices rose 3.11 percent in February and 2.95 percent in January.

Nationally, home prices declined 6.7 percent in February. Excluding distressed sales, prices dropped 0.1 percent.

CoreLogic is a real estate research and services firm based in California.

Boston Area Housing Value Increases By $11 Billion

Real estate marketplace Zillow.com released a report that states home values in Greater Boston have increased by almost $11 billion in 2010, the Boston Herald reported December 10, 2010.

Compared to the rest of the country, Boston is in great shape and will be out ahead of other major cities as the housing market continues to stabilize.

This year alone, U.S homes are predicted to lose $1.7 trillion in value, with New York having the biggest decline of $103 billion and Chicago following with a $48 billion decline so far this year.

The Boston area was one of the two cities in the country to see increases in home values. Boston’s increases came to $10.8 billion, while San Diego saw a $10.2 billion jump.  Local economists believe that health care and education are two industries that have had positive effects on stabilizing Boston’s housing and employment sectors.

Although Boston area home values have increased in 2010, the region is still down by $105 billion from its peak five years ago.

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House Hunters Boston

In this 2008 episode of House Hunters, a young woman searches for her first home in Boston