Steel Markets

S&P Core Logic Case Shiller: Home Prices Up 4.8 Percent in July

September 29, 2020

Home prices continued to rise at a modest rate in July. The S&P CoreLogic Case-Shiller U.S. National Home Price Index reported an annual gain of 4.8 percent, compared to 4.3 percent in June. On a month-over-month basis the National Index grew 0.8 percent in July.

The 20-city composite, actually 19 cities in July due to missing data from the Detroit area, posted a 3.9 percent gain.

“The strength of the housing market was consistent nationally – all 19 cities for which we have July data rose, with 16 of them outpacing their June gains,” said Craig Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices. “In previous months, we’ve noted that a trend of accelerating increases in the National Composite Index began in August 2019. That trend was interrupted in May and June, as price gains decelerated modestly, but now may have resumed. Obviously more data will be required before we can say with confidence that any COVID-related deceleration is behind us.”

Phoenix led the nation for the 14th consecutive month with a 9.2 percent increase in July. Seattle followed at 7.0 percent, Charlotte at 6.0 percent and Tampa at 5.9 percent. “Prices were particularly strong in the Southeast and West regions, and comparatively weak in the Midwest and Northeast,” said Lazzara.

The National Association of Home Builders says an imbalance of supply and demand in the market is driving prices higher. Record sales for existing home were reported in July, but inventory fell to a 3.1 month supply, down from 3.9 months in June.