Home prices annually increased once again, according to the latest Case-Shiller Home Price Index from S&P Dow Jones Indices and CoreLogic.
The report's results showed that July 2018 saw an increase of 6% for the year for home prices nationwide, but this is down from 6.2% from the previous month's report. Average home prices for the top 10 metropolitan areas increased 5.5% and the 20-city composite saw a 5.9% year-over-year gain.
Before seasonal adjustment, the National Index increased 0.4% month-over-month in July. The 10-city composite remained unchanged at 0.4% and the 20-city composite increased 0.1%. After seasonal adjustment, the National Index recorded a month-over-month gain of 0.2% in July.
The 10-city and 20-city composites both increased 0.2% and 0.3% month-over-month. Before seasonal adjustment, 18 of 20 cities reported increases, while 13 of 20 cities reported increases after the seasonal adjustment.
S&P Dow Jones Indices Managing Director and Chairman of the Index Committee David Blitzer said rising homes prices are beginning to catch up with housing.
“Year-over-year gains and monthly seasonally adjusted increases both slowed in July for the S&P Corelogic Case-Shiller National Index and the 10 and 20-City Composite indices, Blitzer said.” “The slowing is widespread: 15 of 20 cities saw smaller monthly increases in July 2018 than in July 2017.”
“Sales of existing single family homes have dropped each month for the last six months and are now at the level of July 2016,” Blitzer continued. “Housing starts rose in August due to strong gains in multifamily construction.
Seattle, Las Vegas and San Francisco continue to have the highest year-over-year gains among all 20 cities. Once again, Las Vegas took the lead with a year-over-year price increase of 13.7%, Seattle saw a 12.1% price increase and San Francisco increased 10.8%.
Overall, five of the 20 cities reported greater price increases in the year ending July 2018 versus the previous month.
Blitzer added that the index of housing affordability has worsened substantially since the start of the year.
“Since home prices bottomed in 2012, 12 of the 20 cities tracked by the S&P Corelogic Case-Shiller indices have reached new highs before adjusting for inflation,” Blitzer said. “The eight that remain underwater include the four cities which led the home price boom: Las Vegas, Miami, Phoenix and Tampa. All are enjoying rising prices, especially Las Vegas which currently has the largest year-over-year increases of all 20 cities.”
Although Case-Shiller’s Home Price Index reports a significant increase, the latest House Price Index from the Federal Housing Finance Agency revealed only a slight increase in home prices. You can read more about the FHFA report here.
