Home prices are continuing to rise across the U.S., both as a whole and in the nation’s major metropolitan areas, according to the S&P CoreLogic Case-Shiller Home Price Indices for September. (Note that as records for Wayne County, Michigan, are not yet available for September, the reading does not include a Detroit index value. Detroit index values are now available for August.)
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 7% annual gain in September, up from 5.8% in August. The 10-City Composite annual increase rose to 6.2%, up from 4.9% the previous month, while the 20-City Composite showed a 6.6% YOY gain, up from 5.3% in August.
Phoenix, Seattle, and San Diego showed the highest year-over-year increases out of the 19 cities (excluding Detroit) in this month’s reading.
“Phoenix’s 11.4% increase topped the league table for September; this is the 16th consecutive month in which Phoenix home prices rose more than those of any other city,” says Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “Seattle (10.1%) and San Diego (9.5%) repeated in second and third place. Even the worst-performing cities, New York (4.3%) and Chicago (4.7%), did better in September than in August. Prices were strongest in the West and Southwest regions, but even the comparatively weak Midwest scored 6% gains.”
On a month-over-month basis, the National Index rose by 1.2%, the 10-City Composite rose by 1.3%, and the 20-City Composite rose by 1.2%, before seasonal adjustment. After seasonal adjustment, the National Index rose 1.4% month over month, while the 10- and 20-City Composites rose by 1.2% and 1.3% respectively. All 19 cities (with Detroit excluded) reported price increases both before and after seasonal adjustment.
“Housing prices were notably—I am tempted to say ‘very’—strong in September,” Lazzara says. “A trend of accelerating increases in the National Composite Index began in August 2019 but was interrupted in May and June, as COVID-related restrictions produced modestly decelerating price gains. Our three monthly readings since June of this year have all shown accelerating growth in home prices, and September’s results are quite strong … This month’s increase may reflect a catch-up of COVID-depressed demand from earlier this year; it might also presage future strength, as COVID encourages potential buyers to move from urban apartments to suburban homes. The next several months’ reports should help to shed light on this question.”