Home prices continued to trend upwards in September as the benchmark 20-city index rose for a eighth consecutive month. The S&P Case-Shiller Home Price Index revealed seasonally adjusted home prices for the 20-city index saw a 0.7% increase month-over-month (MoM) and a 3.9% increase year-over-year (YoY). After adjusting for inflation, the MoM was reduced to 0.1% and the YoY was reduced to -2.9%.
The seasonally adjusted home prices for the 10-city index saw a 0.7% increase MoM, and a 4.8% increase YoY. After adjusting for inflation, the MoM dropped to 0.1% and YoY dropped to -2.1%.
The seasonally adjusted home prices for the national index saw a 0.7% increase MoM, and a 3.9% increase YoY. After adjusting for inflation, the MoM fell to 0.1% and YoY fell to -2.9%.
Here is the analysis from today's Standard & Poor's press release:
ANALYSIS
“U.S. home prices continued their rally in September 2023,” says 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. 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.
“On a year-over-year basis, the three best-performing metropolitan areas in September were Detroit (+6.7%), San Diego (+6.5%), and New York (+6.3%). San Diego’s presence breaks the Rust Belt’s recent grip on the top three positions, but the bottom three continue to have a western flavor. Yea-rover-year, September’s worst performers were Las Vegas (-1.9%), Phoenix (-1.2%), and Portland (-0.7%). The Northeast (+5.3%) and Midwest (+5.0%) continue as the nation’s strongest regions, while the West (-1.3%) remains the weakest.
“On a year-to-date basis, the National Composite has risen 6.1%, which is well above the median full calendar year increase in more than 35 years of data. Although this year’s increase in mortgage rates has surely suppressed the quantity of homes sold, the relative shortage of inventory for sale has been a solid support for prices. Unless higher rates or exogenous events lead to general economic weakness, the breadth and strength of this month’s report are consistent with an optimistic view of future results.”
