U.S. home prices increased 0.3% on an adjusted basis in October compared with September and were up 3.6% compared with October 2023, according to the S&P CoreLogic Case-Shiller home price index.
The report shows that home price growth is slowing: Month-over-month, the index’s 20-city composite and 10-city composites – measuring home prices in the top 20 largest U.S. metros – each decreased -0.3%, on an adjusted basis, indicating that home prices may have plateaued.
In addition, October’s annual gain of 3.6% was a significant slowdown from September’s annual gain of 3.9%.
“New York once again reigns supreme as the fastest-growing housing market with annual returns over double the national average,” says Brian D. Luke, CFA, head of commodities, real and digital assets, S&P Global, in a release. “Two markets have dominated the top ranks with New York leading all markets the past six months and San Diego the six months prior. New York is the only market sitting at all-time highs and one of just three markets with gains on the month. Accounting for seasonal adjustments shows a broader rally across the country.”
“Our National Index hit its 17th consecutive all-time high, and only two markets – Tampa and Cleveland – fell during the past month,” Luke says. “The annual returns continue to post positive inflation-adjusted returns but are falling well short of the annualized gains experienced this decade. Markets in Florida and Arizona are rising, but not keeping up with inflation, and are well off the over 10 percent gains annually from 2020 to present. This has allowed other markets to catch up.”
“With the latest data covering the period prior to the election, our national index has shown continued improvement,” Luke adds. “Removing the political uncertainly risk has led to an equity market rally; it will be telling should the similar sentiment occur among homeowners.”
Photo: Gustavo Zambelli