National home-price appreciation edged up 0.5% in August, alongside marginal gains in the 10-city and 20-city composite indices, according to the S&P CoreLogic Case-Shiller release Tuesday morning.
The national index, covering all nine census divisions, posted a 5.3% annual gain in August, a slight gain from July’s 5.0%. The 20-City Composite and 10-City Composite posted increases year-over-year of 5.1% and 4.3%, respectively. Not seasonally adjusted, all three portions of the index edged up month-over-month, at a rate slightly higher than the 0.1% increases seen the past two months. After seasonal adjustment, the National Composite increased 0.6% month-over-month, and both the 20-city and 10-city composite reported a 0.2% gain.
Among the cities in the 20-City Composite (after seasonal adjustment), 14 cities experienced home price gains in August, up from the 12 cities reported in July. Only four cities saw negative changes in home prices, and two cities remained unchanged. Year-over-year, ten cities reported greater annual price gains for the 12 months ending in August 2016 versus July 2016, when nine cities reported annual increases.
David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, stated that the gradual gains seen in home prices are being sustained by moderate economic growth. Alongside other economic indicators, Blitzer feels the market will continue to grow.
“Other housing data including sales of existing single family homes, measures of housing affordability, and permits for new construction also point to a reasonably healthy housing market.” Blitzer noted that the housing recovery is taking a notably slower pace than that of the stock market recovery, however. “Since the last recession ended in June 2009, the stock market as measured by the S&P 500 rose 136% to the end of August while home prices are up 23%. However, home prices did not reach bottom until February 2012, almost three years later.”
“Using the 2012 date as the starting point, home prices are up 38% compared to 59% for stocks. While the stock market recovery has been greater than the rebound in home prices, the value of Americans’ homes at about $22.3 trillion is slightly larger than the value of stocks and mutual funds at $21.2 trillion.“
Among all census regions, the Pacific Northwest and the West continue to be the strongest regions for housing growth.
Largest year-over-year price gains in August:
- Portland, Ore.: up 11.7%
- Seattle, Wash.: up 11.4%
- Denver, Colo.: up 8.8%
- Dallas, Texas: up 8.1%
- Tampa, Fla.: up 7.6%
- Miami, Fla.: up 7.1%
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