Home Price Increase Rate Continues to Slow

Home price gains slowed to an annual rate of 3.2 percent in August, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.

The 10-City Composite annual increase slowed to 1.5% in August, down from 1.6% in July. The 20-City Composite posted a 2.0% year-over-year gain, unchanged from July. Phoenix led growth with a 6.3% year-over-year price increase, followed by Charlotte, N.C. at 4.5% and Tampa at 4.3%. Seven of the 20 cities reported greater price increases in the year ending August 2019 versus the year ending July 2019.  

Month over month, before seasonal adjustment, the National Index posted a an 0.2% in August. The 10-City and 20-City Composites did not post any gains for the month. After seasonal adjustment, the National Index posted an 0.3% month-over-month increase in August. The 10-City Composite posted a 0.1% decrease and the 20-City Composite posted a 0.2% decrease. Eleven of 20 cities reported increases both before seasonal adjustment while 17 of 20 cities reported increases after seasonal adjustment.

Philip Murphy, Managing Director and Global Head of Index Governance with S&P Dow Jones Indices, noted regional shifts, with Las Vegas price growth falling out of the top three, to eighth. “A shift in regional leadership may be underway beneath the headline national index,” he said.

The report said as of August, average home prices for the metros within the 10-City and 20-City Composites are back to their winter 2007 levels.