Home Prices Grow in August But Continue to Decline in Real Terms

In August, the S&P Cotality Case-Shiller U.S. National Home Price Index recorded a 2.1% annual gain, up from a 1.9% rise in July. The 10-City Composite increased 3.6% year-over-year, up from a 3.4% gain the previous month, while the 20-City Composite moved up 2.7%, up from 2.5%. Chicago again posted the highest annual gain at 6.7%, followed by New York at 6.2% and Cleveland at 4.3%. Meanwhile, Seattle posted the lowest annual return with prices falling 2.0%.

On a month-over-month basis, the U.S. National Index ticked down 0.2% before seasonal adjustment. At the same time, the 10-City and 20-City Composites both decreased 0.4%. After seasonal adjustment, the National Index and the 20-City Composite both rose 0.3%, while the 10-City Composite increased 0.4%. The Northeast and Midwest continued to outperform other regions, sustaining a year-long trend. In addition to Seattle, Las Vegas (down 1.3%), Dallas (down 0.8%), Denver (down 0.8%) and Tampa (down 0.4%) exhibited declines in August.

In August, seasonal factors continued to have a notable impact on home prices, with home prices falling on a non-adjusted basis. This suggests that the typical post-summer slowdown is masking strength in home prices. However, elevated inflation and high mortgage rates continued to weigh on affordability.