Two leading housing data reported affirmed a continued increase in home prices.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 3.9% annual change in September, up from a 2.5% change in the previous month. The 10-City Composite showed an increase of 4.8%, up from a 3% increase in the previous month, while the 20-City Composite posted a year-over-year increase of 3.9%, up from a 2.1% increase in the previous month.
Before the seasonal adjustment, the U.S. National Index, 10-City and 20-City Composites all posted 0.3% month-over-month increases in September. After the seasonal adjustment, the U.S. National Index, the 10-City and 20-City Composites each posted month-over-month increases of 0.7%.
Detroit reported the highest year-over-year gain among the 20 cities with an 6.7% increase in September, followed by San Diego with a 6.5% increase. Three of the 20 cities tracked for this study reported lower prices in September versus a year ago.
“U.S. home prices continued their rally in September 2023,” said Craig J. Lazzara, managing director at S&P DJI. “Our National Composite rose by 0.3% in September, marking eight consecutive monthly gains since prices bottomed in January 2023. The Composite now stands 3.9% above its year-ago level and 6.6% above its January level. Our 10- and 20-City Composites both rose in September, and likewise currently exceed their year-ago and January levels.”
“We’ve commented before on the breadth of the housing market’s strength, which continued to be impressive,” Lazzara added. “On a seasonally adjusted basis, all 20 cities showed price increases in September; before seasonal adjustments, 15 rose. Prices in 17 of the cities are higher than they were in September 2022. Notably, the National Composite, the 10-City Composite, and 10 individual cities – Atlanta, Boston, Charlotte, Chicago, Cleveland, Detroit, Miami, New York, Tampa, and Washington – stand at their all-time highs.”
Separately, the Federal Housing Finance Agency’s (FHFA) House Price Index reported a 5.5% year-over-year increase in home prices during the third quarter. Prices were up 2.1% from the previous quarter.
Prices rose year-over-year in 49 states during the third quarter, with the biggest increases in the Northeast: Vermont (11.8%), Maine (11.1%) New Hampshire (10.3%), Connecticut (9.9%) and New Jersey (8.7%). The two areas with annual price depreciation were Hawaii (-0.9%) and the District of Columbia (-0.8%).
“U.S. house price growth continued to accelerate in the third quarter, appreciating more than in each of the previous four quarters,” said Dr. Anju Vajja, principal associate director in FHFA’s Division of Research and Statistics. “House prices rose in the third quarter in all census divisions and are higher than one year ago, driven primarily by a low supply of homes for sale.”
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Didn’t we you would be posting this? They didn’t raise rates again. Big mistake. Applications for mortgages were up and so inventory goes down and overinflated bad made homes go for more money. Stop pausing the rates until it’s permanent.