S&P CoreLogic Case-Shiller HPI Indicates Home Price Gains Slowed in September

The S&P CoreLogic Case-Shiller Home Price Index (HPI) for all 9 U.S. census divisions posted a 5.5% annual gain in September, down from 5.7% in the previous month.

“Home prices plus data on house sales and construction confirm the slowdown in housing,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “The S&P CoreLogic Case-Shiller National Index showed a 5.5% year-over-year gain, weaker for the second month in a row as 16 of 20 cities showed smaller annual price gains.”

The 10-City Composite and the 20-City Composite both came in higher by 0.3% for the month-over-month. In September, 9 of 20 cities saw increases before seasonal adjustment, while 18 of 20 cities reported increases after seasonal adjustment.

The national HPI posted a month-over-month gain of 0.1% in September, before seasonal adjustments.

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<td”> Released On 11/27/2018 9:00:00 AM For Sep, 2018

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“On a monthly basis, nine cities saw prices decline in September compared to August. In Seattle, where prices were rising at double-digit annual rates a few months ago, prices dropped last month,” Mr. Blitzer added.

Las Vegas, Phoenix and Tampa reported larger gains, all cities boasting the biggest gains before suffering the largest losses 10 years ago.

The 10- City Composite annual increase came in at 4.8%, down from 5.2% in the previous month. The 20-City Composite posted a 5.1% year-over-year gain, down from 5.5% in the previous month.

Four of the 20 cities reported greater price increases in the year ending September 2018 versus the year ending August 2018. Las Vegas, San Francisco and Seattle reported the highest year-over-year gains among the 20 cities. In September, Las Vegas led the way with a 13.5% year-over-year price increase, followed by San Francisco with a 9.9% increase and Seattle with an 8.4% increase.

After seasonal adjustment, the National Index posted a seasonally adjusted 0.4% month-over-month gain in September.

“Sales of both new and existing single family homes peaked one year ago in November 2017. Sales of existing homes are down 9.3% from that peak. Housing starts are down 8.7% from November of last year,” Mr. Blitzer continued. “The National Association of Home Builders sentiment index dropped seven points to 60, its lowest level in two years.”

“One factor contributing to the weaker housing market is the recent increase in mortgage rates. Currently the national average for a 30-year fixed rate loan is 4.9%, a full percentage point higher than a year ago.”