Home prices are still on the rise, but two new data reports are pointing to a slowing acceleration.
The S&P CoreLogic Case-Shiller US National Home Price NSA Index reported a 4.2% annual return for August, down from a 4.8% annual gain in July. The 10-City Composite saw an annual increase of 6.0%, down from a 6.8% annual increase in the previous month, while the 20-City Composite posted a year-over-year increase of 5.2%, lower than the 5.9% increase in the previous month.
The National Index posted a -0.1% month-over-month in August decrease while the 20-City and 10-City Composites both posted decreases of -0.3% and -0.4% before the seasonal adjustment. After the seasonal adjustment, the National Index posted a 0.3% increase while the 20-City and 10-City Composites posted increases of 0.4% and 0.3%.
New York City again reported the highest annual gain among the 20 cities with an 8.1% increase in August, while Denver recorded the weakest growth at 0.7%.
“Home price growth is beginning to show signs of strain, recording the slowest annual gain since mortgage rates peaked in 2023,” said Brian D. Luke, head of commodities, real and digital assets at S&P Dow Jones Indices. “As students went back to school, home price shoppers appeared less willing to push the index higher than in the summer months. Regionally, all markets continue to remain positive, barely.”
Separately, the Federal Housing Finance Agency (FHFA) reported house prices rose 4.2% year-over-year in August. The FHFA seasonally adjusted monthly House Price Index was up by a modest 0.3% while the previously reported 0.1% price increase in July was revised upward to 0.2%.
“House price appreciation in the United States remained modest for the sixth consecutive month,” said Dr. Anju Vajja, deputy director for FHFA’s Division of Research and Statistics. “The slow but continued house price growth and the effect of locked-in interest rates led to persistent housing affordability challenges.”
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