In what is getting to become a monthly event, the S&P CoreLogic Case-Shiller Index has soared to yet another all-time high.
“Our home price index has appreciated 4.1% year-to-date, the fastest start in two years,” said Brian D. Luke, head of commodities, real and digital assets at S&P Dow Jones Indices. “Covering the six-month period dating to when mortgage rates peaked, our national index has risen the past four months, erasing the stall experienced late last year. Collectively, all 20 markets covered continue to trade in a homogeneous pattern.”
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 5.9% annual gain for May, down from a 6.4% annual gain in the previous month. The 10-City Composite saw an annual increase of 7.7%, down from an 8.1% annual increase in the previous month, while the 20-City Composite posted a year-over-year increase of 6.8%, dropping from a 7.3% increase in the previous month.
New York reported the highest annual gain among the 20 cities with a 9.4% increase in May, followed by San Diego and Las Vegas with increases of 9.1% and 8.6%, respectively. Portland once again held the lowest rank for the smallest year-over-year growth, notching a 1.0% annual increase in May.
The upward trends in the U.S. National Index, the 20-City Composite, and the 10-City Composite upward trends continued to decelerate from last month, with pre-seasonality adjustment increases of 0.9%, 1.0%, and 1.0%, respectively. After the seasonal adjustment, the U.S. National Index posted the same month-over-month change of 0.3% as last month, while the 20-City and 10-City Composite reported a monthly change of 0.3% and 0.4%, respectively.
“While annual gains have decelerated recently, this may have more to do with 2023 than 2024, as recent performance remains encouraging,” said Luke, adding that “all 20 markets observed annual gains for the last six months. The last time we saw that long a streak was when all markets rose for three years consecutively during the Covid housing boom. This rally pales in comparison in both duration and annual gains, with above trend growth of 6.2%. The waiting game for the possibility of favorable changes in lending rates continues to be costly for potential buyers as home prices march forward.”
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