From the Record:
Home prices in the region continue to rise, but at the slowest pace in the nation, the S&P CoreLogic Case-Shiller index reported Tuesday.
Values rose 1.7 percent in the New York metropolitan area, which includes North Jersey, in the 12 months ending in August, the index reported. That compares with an overall increase of 5.1 percent for Case-Shiller’s 20-city index.
Property values in the area haven’t rebounded as fast from the housing crash as in other parts of the country, in part because they didn’t fall as far during the downturn. In addition, New Jersey is still dealing with the after-effects of the foreclosure crisis, because it was slower to deal with distressed homes than many other states.
David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices, said the increase in national home prices reflects moderate economic growth.
“Other housing data, including sales of existing single family homes, measures of housing affordability, and permits for new construction also point to a reasonably healthy housing market,” he said.
Home prices in the region are still equal to the level reached a dozen years ago, in late 2004, while national prices have recovered to the levels of mid-2005. Prices in the region remain about 14 percent below their peaks in mid-2006, while national prices, as measured by a 20-city index, are about 7 percent below those peaks.
Case-Shiller does not break out home prices by county. But according to the New Jersey Realtors, single-family home prices ticked down in both counties in August from the previous year, dropping 1.6 percent in Bergen County, to a median $490,000, and dipping 0.2 percent in Passaic, to a median $310,000.