U.S. home prices continued to decelerate in September, falling to an annual gain of 3.9%, down from an annual gain of 4.3% in August, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.
Month-over-month, U.S home prices increased 0.3%, on an adjusted basis, compared with August.
The index’s 20-city and 10-city composites – measuring home prices in the largest U.S. cities – reported monthly rises of 0.2% and 0.1%, respectively.
Year-over-year, the 10-city composite saw an annual increase of 5.2%, while the 20-city composite posted increase of 4.6%.
New York reported the highest annual gain among the 20 cities with a 7.5% increase in September, followed by Cleveland and Chicago with annual increases of 7.1% and 6.9%, respectively. Denver posted the smallest year-over-year growth with 0.2%.
“Home price growth stalled in the third quarter, after a steady start to 2024,” says Brian D. Luke, CFA, head of commodities, real and digital assets, in a statement. “The slight downtick could be attributed to technical factors as the seasonally adjusted figures boasted a 16th consecutive all-time high.”
“We continue to see above-trend price growth in the Northeast and Midwest, growing 5.7 percent and 5.4 percent, respectively, led by New York, Cleveland, and Chicago,” he adds.. “The Big Apple has taken the top spot for five consecutive months, pushing the region ahead of all others since August 2023. The South region reported its slowest growth in over a year, rising 2.8 percent, barely above current inflation levels.”
“Today’s CoreLogic Case-Shiller U.S. national price index revealed a steady 3.9 percent increase year over year,” says Ernie Durbin, chief valuation officer for Voxtur, in a statement. “While this might boost homeowners’ equity, these persistent hikes are making housing less affordable.”
“We must closely monitor this index as the new Trump administration’s policies take effect. Implementing sweeping tariffs on imports could significantly raise the prices of new construction, further straining housing supply and affordability,” Durbin adds. “Moreover, when people move from one house to another, they incur additional expenses like appliances, furniture, and so on. If tariffs force higher prices, these potential purchases could also dampen consumer activity. Some individuals might choose to delay their move due to increased costs. We will have to keep an eye on how homeowners manage their accumulated equity. By this time next year, any implemented policies will be in place, enabling us to use this index as one measurement of their impact on housing.”
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