Case-Shiller Home Price Index Sets 4th Straight Monthly Record

The Standard & Poor’s CoreLogic Case-Shiller Home Prices Indices reported another strong surge in home prices in February, setting a record for the fourth consecutive month.

The U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.8% annual gain in February, up from 5.6% last month and setting a 32-month high. The 10-City Composite posted a 5.2% annual increase, up from 5.0% the previous month. The 20-City Composite reported a year-over-year gain of 5.9%, up from 5.7% in January.

Before seasonal adjustment, the National Index posted a month-over-month gain of 0.2% in February. The 10-City Composite posted an 0.3% increase and the 20-City Composite reported an 0.4% increase in February. After seasonal adjustment, the National Index recorded an 0.4% month-over-month increase. The 10-City Composite posted an 0.6% increase; the 20-City Composite reported an 0.7% month-over-month increase. Sixteen of 20 cities reported increases in February before seasonal adjustment; after seasonal adjustment, 19 cities saw prices rise.

Seattle, Portland and Dallas reported the highest year-over-year gains among the 20 cities. Seattle led the way with a 12.2% year-over-year price increase, followed by Portland with 9.7%. Dallas replaced Denver in the top three with an 8.8% increase. Fifteen cities reported greater price increases in the year ending February versus January.

“Housing–and home prices–continue to advance,” said David Blitzer, Managing Director and Chairman of the Index Committee with S&P Dow Jones Indices. “There are still relatively few existing homes listed for sale and the small 3.8 month supply is supporting the recent price increases. Housing affordability has declined since 2012 as the pressure of higher prices has been a larger factor than stable to lower mortgage rates.”

Mark Vitner, senior economist with Wells Fargo Securities, Charlotte, N.C., said prices continue to be fueled by a steady uptrend in sales and low inventory.

“Sentiment reports indicate that consumers feel increasingly confident that it is a ‘good time to sell,'” Vitner said. “Low inventories and rising demand are likely to continue to fuel price pressures.”

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