Steel Markets

Home Price Growth Stabilizing in Latest Case-Shiller Data

October 30, 2019

Home prices rose in August but at a slowing pace, says S&P Dow Jones Indices. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 3.2 percent annual gain compared to 3.1 percent in July.

An annual gain of 1.5 percent was reported for the 10-City Composite compared to 1.6 percent in July. The 20-City Composite posted a 2.0 percent annual gain and was unchanged from the previous month.

“The U.S. National Home Price NSA Index trend remained intact with a year-over-year price change of 3.2 percent,” said Philip Murphy, Managing Director and Global Head of Index Governance at S&P Dow Jones Indices. “However, a shift in regional leadership may be underway beneath the headline national index.”

Phoenix, Charlotte and Tampa reported the highest year-over-year price gains among the 20-City Composite cities. Seven of the 20 cities reported greater price increases in the year ending August 2019 versus the year ending July 2019.

“Rather than signifying an impending housing swoon, this slowdown should more accurately be read as stabilization after years of imbalance between buyers and sellers,” said Matt Speakman, economist at Zillow. “Demand for housing is staying strong, and homebuyers remain optimistic about the state of the market, insisting that now is as good a time to buy as any since at least last year.”

Speakman added, “A severe and enduring shortage of inventory, particularly at entry-level price points, does continue to impede many would-be buyers’ aspirations and is somewhat worrisome. Recent, encouraging home sales reports suggest that a sharp slowdown in the housing market is unlikely, and that a modest reacceleration of home value appreciation may be coming soon.”