For the third consecutive month, home price increases across the U.S. have slowed, according to the latest S&P CoreLogic/Case-Shiller Indices. In fact, October numbers for the National Home Price NSA Index have remained at 5.5 percent annual gain for October, the same from the previous month. While home prices have risen, there’s a long-term trend toward slower growth.
“Home prices in most parts of the U.S. rose in October from September and from a year earlier,” said David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “The combination of higher mortgage rates and higher home prices rising faster than incomes and wages means fewer people can afford to buy a house. Fixed rate 30-year mortgages are currently 4.75 percent, up from 4 percent one year earlier. Home prices are up 54 percent, or 40 percent excluding inflation, since they bottomed in 2012. Reduced affordability is slowing sales of both new and existing single-family homes. Sales peaked in November 2017 and have drifted down since then.”
“The largest gains were seen in Las Vegas where home prices rose 12.8 percent in the last 12 months, compared to an average of 5.3 percent across the other 19 cities. This is a marked change from the housing collapse in 2006-12 when Las Vegas was the hardest hit city with prices down 62 percent. After the last recession, Las Vegas diversified its economy by adding a medical school, becoming a regional center for health care, and attracting high technology employers. Employment is increasing 3 percent annually, twice as fast as the national rate.”
The Case-Shiller 10-City Composite, an average of 10 metros (Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco, and Washington, D.C.), increased 4.7 percent year-over-year, a slight drop from the prior month’s 4.9 percent increase. And the 20-City Composite—an average of the 10 metros in the 10-City Composite, in addition to Atlanta, Charlotte, Cleveland, Dallas, Detroit, Minneapolis, Phoenix, Portland, Seattle and Tampa—increased 5 percent year-over-year, a decrease from 5.2 percent in September.
Here’s the complete data for the 20 markets measured by S&P:
Month-Over-Month (MoM): 0.2%
Year-Over-Year (YoY): 6%
Las Vegas, Nev.
Los Angeles, Calif.
New York, N.Y.
San Diego, Calif.
San Francisco, Calif.
Liz Dominguez is RISMedia’s associate content editor. Email her your real estate news ideas at email@example.com. For the latest real estate news and trends, bookmark RISMedia.com.