Steel Markets

Case-Shiller Index Reveals Slower Gains in Home Pricing

Written by Sandy Williams


Home price increases are slowing, according to the latest S&P CoreLogic Case-Shiller Index. The National Home Price NSA Index reported a 5.5 percent annual gain in September, down from 5.7 percent in August and the second consecutive decline. Sixteen of the 20 cities reported smaller annual price gains. Gains are now at the lowest level since January 2017.

The 10-City Composite annual increase came in at 4.8 percent, down from 5.2 percent in the previous month. The 20-City Composite posted a 5.1 percent year-over-year gain, down from 5.5 percent in the previous month.

On a month-over-month basis, the National Index grew a seasonally adjusted 0.1 percent, while neither the 10-City or 20-City composites showed any gains.

“Home prices plus data on house sales and construction confirm the slowdown in housing,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.

“Sales of both new and existing single-family homes peaked one year ago in November 2017. Sales of existing homes are down 9.3 percent from that peak. Housing starts are down 8.7 percent from November of last year. The National Association of Home Builders sentiment index dropped seven points to 60, its lowest level in two years. One factor contributing to the weaker housing market is the recent increase in mortgage rates. Currently, the national average for a 30-year fixed rate loan is 4.9 percent, a full percentage point higher than a year ago.”

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