The latest data from S&P Dow Jones Indices shows that home prices continued to rise across the United States as 2019 wound down, although appreciation remains at a modest rate.
The S&P CoreLogic Case-Shiller U.S. National Home Price Index reported a 3.3% annual gain in October, up from 3.2% in the month prior. It’s a figure that Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices, called “reassuring.”
“With October’s 3.3% increase in the national composite index, home prices are currently more than 15% above the pre-financial crisis peak reached July 2006,” he said. “October’s results were broad-based, as both our 10- and 20-City Composites rose.”
The 10-City Composite Index’s October increase came in at 1.7% year over year, up from 1.5% in September. The 20-City Composite, meanwhile, logged a 2.2% year-over-year climb, up from 2.1% in the previous month.
“As was the case last month, after a long period of decelerating price increases, the national, 10-city, and 20-city composites all rose at a modestly faster rate in October compared to September,” Lazzara said. “This stability was broad-based, reflecting data in 12 of 20 cities. It is, of course, still too soon to say whether this marks an end to the deceleration or is merely a pause in the longer-term trend.”
Month over month, all three indices all posted a month-over-month increase of 0.1% without seasonal adjustment in October. On a seasonally adjusted basis, the national index posted a 0.5% monthly gain between September and October, while the 10- and 20-city composites both recorded a 0.4% monthly increase.
Phoenix, Tampa and Charlotte reported the largest annual gains among the 20 cities tracked by S&P and CoreLogic. Phoenix topped the list, with a 5.8% price increase between October 2018 and October 2019 — the fifth consecutive month that Phoenix has paced the country. The Southeast also flashed some strength, with Tampa at 4.9% and Charlotte at 4.8%, and Atlanta also rising by more than 4%.
Just one city saw a year-over-year price decrease in October: San Francisco, which shed 0.4% from October 2018 to October 2019.