Home price growth continued its historic slowdown in September, according to the latest Case-Shiller Home Price Index.
- Y-O-Y: The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 10.6% annual gain in September, this is down from 13.0% in August.
- M-O-M: Home prices fell 1.0% month-over-month in September, a slightly smaller drop than the 1.1% drop reported in August.
Worse Than Expected. Economists projected that the 20-city composite index would fall to 10.8% and it actually fell to 10.4%, down from 13.1% in August.
Over 20%. Just two metro areas reported over 20% growth in September down from five metros the previous month. Miami led the way with 24.6% year-over-year price growth followed by Tampa (23.8%) and Charlotte(+17.8%).
- Home price growth in San Francisco is down to just 2.3% in September. Won’t be long before San Fran is in negative territory.
Analysis. Craig J. Lazzara, managing director at S&P DJI, said as rates continue to rise prices will continue to weaken. “As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable. Given the continuing prospects for a challenging macroeconomic environment, home prices may well continue to weaken.”
- Lazzara also mentioned the continued strength of the South. “The Southeast (+20.8%) and South (+19.9%) were the strongest regions by far, with gains more than double those of the Northeast, Midwest, and West.”
