This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Election and Housing: Is Your Home's Value Better Off?

By Diana Olick, CNBC Correspondent

NEW YORK ( CNBC) - Are we better off today than we were four years ago? That is the constant question on the eve of yet another tight presidential race. From the perspective of home prices, the answer is, as always, it depends on where you live. Some cities are faring far better than others, and some believe that home prices are not entirely finished correcting.

According to the widely watched S&P/Case Shiller Home Price Indices, home values in the nation's ten largest cities were down 2.4% from January 2009 through August 2012 seasonally adjusted. For the top twenty cities, they are down 3.7% seasonally adjusted.

These two composites, however, are still both off nearly 30% from the peaks in the summer of 2006.

Remember, also, that we saw a bump in home prices in 2010 from the Obama administration's home buyer tax credit. Home prices on the 20-city composite were up 1.5% in August 2010, not seasonally adjusted, from January 2009, but then of course they dropped again, and we are still, today, below that level of the tax credit surge.

More from CNBC
Is Disney's Animation Back on Track?
How to Fix the Gas Shortage: Let 'em Gouge
Obama Leading Romney in Craft Beer 'Alection'

So can an incumbent president win a second term when home prices are lower than they were when he took office? I asked S&P's David Blitzer:

"Our data go back to 1987 for the 10-City Composite, so there are a couple of hints -- Bush-1 took office with the index at 77.99 In January 1989; in November 1992 it was 77.09, and he lost. In August 1992 (comparable to August 2012, our latest data point) the index was 77.76, also down by the slightest amount. Clinton, who was re-elected saw home prices rise from an index of 76.56 to 78.23 during his first term -- up 2.2% over four years. The Clinton increase points out how large the price moves in the 2000s were. In the Carter years inflation was running close to double digits so home prices were most likely rising in nominal terms."

While S&P/Case-Shiller's top ten and top twenty city composites are basically flat since President Obama took office, the national quarterly index is up 2.6% not seasonally adjusted, and consumer confidence in home prices is higher than it has been.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%
YHOO $36.00 -0.03%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs