Home price growth cooled to its slowest pace in 10 months in September, according to the S&P CoreLogic Case-Shiller Index.
Home prices rose 0.3% for the month, matching gains seen earlier in the year, but were up just 3.9% compared to the same time last year. This marks a decline from 4.3% in August and the weakest annual growth since November 2023.
Swing & A Miss: The 20-city composite index reflected the broader slowdown, rising 4.6% year-over-year, down from 5.2% in August and falling short of economists’ expectations of 4.8%.
Regional trends varied, with New York leading all cities at 7.5% annual growth, followed by Cleveland (7.1%) and Chicago (6.9%). At the other end of the spectrum, Denver posted the smallest annual gain at just 0.2%.
What They’re Saying: “Home price growth stalled in the third quarter after a steady start to 2024,” said Brian D. Luke, CFA, Head of Commodities, Real & Digital Assets. He pointed to stronger trends in the Northeast and Midwest, where prices remain above trend, while the South reported its slowest growth in over a year, at 2.8%.
Bottom line: With mortgage rates expected to stay high, a continued pullback in home price growth wouldn’t be surprising as affordability pressures weigh on demand.
