S&P: Home Prices Post 3.3% Annual Gain
The S&P CoreLogic Case-Shiller Home Price Indices reported a 3.3% annual gain in October, up from 3.2% in the previous month.
The report, issued Tuesday, said the 10-City Composite increased by 1.7% in October, up from 1.5% in September. The 20-City Composite posted a 2.2% year-over-year gain, up from 2.1% in September.
Phoenix, Tampa and Charlotte reported the highest year-over-year gains among the 20 cities. Phoenix led with a 5.8% year-over-year price increase, followed by Tampa at 4.9% and Charlotte at 4.8% increase. Twelve of the 20 cities reported greater price increases in the year ending October from September.
Month over month, the National Index, 10-City and 20-City Composites all posted an increase of 0.1% before seasonal adjustment in October. After seasonal adjustment, the National Index posted an 0.5%, while the 10-City and 20-City Composites each posted an 0.4% increase. Eight of 20 cities reported increases before seasonal adjustment, while 18 of 20 cities reported increases after seasonal adjustment.
“U.S. housing data continue to be reassuring,” said Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy with S&P Dow Jones Indices. “With October’s 3.3% increase in the national composite index, home prices are currently more than 15% above the pre-financial crisis peak reached July 2006. October’s results were broad-based, as both our 10- and 20-city composites rose. Of the 20 cities in the composite, only San Francisco saw a year-over-year price decline in October.
Frank Nothaft, chief economist with CoreLogic, said the October results confirmed the slowdown in home-price growth in early 2019 ended in late summer. “The decline in mortgage rates, down about one percentage point for fixed-rate loans from one year ago, has supported a rise in sales activity and home prices,” he said.
Nothaft noted price trends varied across cities depending in part on affordability constraints and population growth pressures. “High-cost markets, where the lack of affordable housing remains a critical issue, had the largest deceleration in price growth from one-year ago, with prices declining in San Francisco on an annual basis for the third month in a row,” he said. “Of the cities in the Composite index, Phoenix and Tampa top the list of annual appreciation, reflecting rising demand from strong population growth in Arizona and Florida.”
The report said average home prices for metros within the 10-City and 20-City Composites are back to their winter 2007 levels.