The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. Census divisions, reported a 19.8% annual gain in home prices in August, remaining the same as July.
The 10-City Composite annual increase came in at 18.6%, down from 19.2% in the previous month, while the 20-City Composite posted a 19.7% year-over-year gain, down from 20% in the previous month.
“The U.S. housing market showed continuing strength in August 2021,” says Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “Every one of our city and composite indices stands at its all-time high, and year-over-year price growth continues to be very strong, although moderating somewhat from last month’s levels.”
Before seasonal adjustment, the U.S. National Index posted a 1.2% month-over-month increase in August, while the 10-City and 20-City Composites both posted increases of 0.8% and 0.9%, respectively. After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 1.4%, and the 10-City and 20-City Composites both posted increases of 0.9% and 1.2%, respectively.
Out of the 20 cities included in the report, Phoenix, San Diego, and Tampa, Florida, reported the highest year-over-year gains in August. Phoenix led the way with a 33.3% year-over-year price increase, followed by San Diego with a 26.2% increase, and Tampa with a 25.9% increase.
“The level of home price growth in today’s market is creating a divide between homeowners and renters. Those that already own have seen tremendous wealth gains, while those renting are finding it increasingly difficult to save for a down payment and jump into today’s housing market,” says Ali Wolf, chief economist at Zonda. “This level of home price growth is unsustainable, especially in a rising rate environment. We believe home prices will continue to grow in 2022, albeit at a slower pace than seen this year.”
