Steel Markets

Case-Shiller Index Shows Growth in Home Prices Slowing

Written by Sandy Williams

Home prices grew at a slower rate in July, according to the latest S&P CoreLogic Case-Shiller Index. The National Home Price NSA Index posted an annual gain of 6.0 percent, down from 6.2 percent in June.

The 20-City Composite was at an 11-month low, posting a 5.9 percent year-over-year increase compared to 6.4 percent in June. The 10-city index rose 5.5 percent annually, down from 6.0 percent the previous month.

“Rising homes prices are beginning to catch up with housing,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “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. 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. Housing starts rose in August due to strong gains in multifamily construction. The index of housing affordability has worsened substantially since the start of the year.”

Gains were highest year-over-year in Las Vegas, Seattle and San Francisco at 13.7 percent, 12.1 percent and 10.8 percent, respectively. Since the housing crisis of 2012, 12 of the 20 cities tracked by the index have reached new highs before adjusting for inflation. Four of the cities still below peak levels include the high gainers for June, as well as Washington, D.C., Chicago, New York and Atlanta.

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