S&P Dow Jones Indices released the latest results for the S&P/Case-Shiller Home Price Indices, a measure of U.S. home prices. Data released for October 2014 shows that the pace of home prices across the country continues to decelerate, although eight cities did see prices rise faster.
Both the 10-City and 20-City Composites saw year-over-year declines in October compared with September. The 10-City Composite gained 4.4 percent year-over-year, down from 4.7 percent in September. The 20-City Composite gained 4.5 percent year-over-year, compared with 4.8 percent in September. The S&P/Case Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 4.6 percent annual gain in October 2014 versus 4.8 percent in September.
Miami and San Francisco saw prices rise 9.5 percent and 9.1 percent over the last 12 months. Eight cities, including San Francisco, Denver, and Tampa saw prices rise faster in the year to October than a month earlier. Las Vegas led the declining annual returns with a decrease of 1.2 percent.
Month-over-month
The National and Composite Indices were both slightly negative in October. Both the 10- and 20-City Composites reported a slight downturn, down 0.1 percent, while the National Index –fell 0.2 percent for the month. San Francisco and Tampa led all cities in October with increases of 0.8 percent. Chicago and Cleveland offset those gains by reporting decreases of 1 percent and 0.7 percent, respectively.
October recorded mixed monthly figures. Ten cities recorded lower monthly figures while eight posted increases. Detroit and San Diego both reported flat monthly changes. San Francisco had the largest increase of all 20 cities at 0.8 percent month-over-month.
“After a long period when home prices rose, but at a slower pace with each passing month, we are seeing hints that prices could end 2014 on a strong note and accelerate into 2015,” said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “Two months ago, all 20 cities were experiencing weakening annual price increases. Last month, 18 experienced weakness. This time, 12 cities had weaker annual price growth, but eight saw the pace of price gains pick up. Seasonally adjusted, all 20 cities had higher prices than a month ago.
“Most national economic statistics, other than those connected to housing, posted positive reports in November and early December. Third quarter GDP was revised to 5 percent real growth at annual rates, and unemployment was at 5.8 percent as payrolls added over 300,000 jobs in November. Housing was somber: Housing starts pulled back 1.6 percent, existing home sales were at 4.93 million, down 6.1 percent, and new home sales were 438,000, down 1.6 percent, all in November.”
The S&P/Case-Shiller National U.S. Home Price Index tracks the value of single-family housing within the United States. The index is a composite of single-family home price indices for the nine U.S. Census divisions. The S&P/Case-Shiller Composite of 10 Home Price Index is a value-weighted average of the 10 original metro area indices. The S&P/Case-Shiller Composite of 20 Home Price Index is a value-weighted average of the 20 metro area indices.