Tuesday, October 28, 2014

Slowing Home Price Appreciation Continued

According to the Case-Shiller 20-city index, home prices continued to rise nationally in August but the eight-month slide in price gains continued. Year-over-year price appreciation has fallen from 13.1% in January to 5.6% in August. (The monthly gain was 0.2% in August.) This trend is expected to continue, considering the outlook for rising mortgage interest rates.

The 20-city index remains 15.9% below its 2006 peak.

The 10-city index followed a similar pattern, as year-over-year growth slowed to 5.5% in August from 13.4% in January. Eight out of the 10 metropolitan areas saw home prices rise in August. The largest jumps were in Denver and Las Vegas, at 0.5% each. Only San Francisco and San Diego saw declines, 0.4% and 0.1% respectively. Prices are higher than year-ago levels in all ten areas. Notably, the range of growth rates has narrowed, indicative of a normalizing market.

Read the S&P release.

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