Steel Markets

Case-Shiller: Weaker Price Growth for Housing in February

April 30, 2019

Home price growth reported in the S&P Core-Logic Case-Shiller National Home Price NSA Index slowed in February, rising just 4.0 percent annually from 4.2 percent in January.

The 20-city composite rose just 0.2 percent for the slowest pace of month-over-month growth since September 2012. Year-over-year, the index rose 3.0 percent.

The pace of increases for home prices continues to slow,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Homes began their climb in 2012 and accelerated until late 2013 when annual increases reached double digits. Subsequently, increases slowed until now when the National Index is up 4 percent in the last 12 months.

“Sales of existing single-family homes have recovered since 2010 and reached their peak one year ago in February 2018. Home sales drifted down over the last year except for a one-month pop in February 2019. Sales of new homes, housing starts, and residential investment had similar weak trajectories over the last year. Mortgage rates are down one-half to three-quarters of a percentage point since late 2018,” Blitzer added.

Prices rose faster in inland cities compared to those on either coast or the Great Lakes. The largest year-over-year price increase was 9.7 percent in Las Vegas.

“Regional patterns are shifting,” said Blitzer. “The three California cities of Los Angeles, San Francisco and San Diego have the three slowest price increases over the last year. Chicago, New York and Cleveland saw only slightly larger price increases than California.”