Steel Markets

Case-Shiller Shows Possible Acceleration in Home Pricing

February 24, 2020

Home prices, as reported by S&P Dow Jones, rose at a modest rate in December 2019. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. Census divisions, reported a 3.8 percent annual gain in December, up from 3.5 percent in November.

S&P Dow Jones noted that following a period of decelerating price increases, the national and composite indexes rose at a faster rate in December than in November. “It is, of course, too soon to say whether this marks an end to the deceleration or is merely a pause in the longer-term trend,” said Craig J. Lazzara, managing director and global head of Index Investment Strategy at S&P Dow Jones Indices.

The 20-City composite posted a 2.9 percent year-over-year gain, up 2.5 percent from the previous month. Phoenix posted the biggest gain at 6.5 percent, followed by Charlotte (5.3 percent) and Tampa (5.2 percent). In December, 12 of the 20 cities covered in the index reported annual price gains.

On a month-over-month basis, the National Index posted an increase of 0.1 percent, the 10-City Composite a 0.1 percent increase, while the 20-City Composite did not post any gains before seasonal adjustment.

“The U.S. housing market continued its trend of stable growth in December,” said Lazzara. “December’s results bring the National Composite Index to a 3.8 percent increase for calendar 2019. This marks eight consecutive years of increasing housing prices (an increase that is echoed in our 10- and 20-City Composites). At the national level, home prices are 59 percent above the trough reached in February 2012, and 15 percent above their pre-financial crisis peak. Results for 2019 were broad-based, with gains in every city in our 20-City Composite.”