Home >> Daily Dose >> Home Prices: Slower Growth, Regional Gains
Print This Post Print This Post

Home Prices: Slower Growth, Regional Gains

home equityThe latest results for the S&P CoreLogic Case-Shiller Indices for November 2018, released on Tuesday shows that the rate of home price increases across the U.S. has continued to slow.

“Home prices are still rising, but more slowly than in recent months,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. He indicated that the pace of prices is “being dampened by declining sales of existing homes and weaker affordability.”

On a year-over-year, the Indice covering all nine U.S. census divisions, revealed a 5.2 percent annual gain in November, down from 5.3 percent in the previous month. The 10-city composite annual increase is at 4.3 percent, dropping from 4.7 percent in the previous month. On the other hand, the 20-city composite reflected a 4.7 percent year-over-year gain, a decline from 5 percent in October 2018.

Sharing her insight on the release, Danielle Hale, Chief Economist at Realtor.com said, “Prices increased from a year ago but at a slower pace than we saw in October. Again, the hottest markets were out west. The Washington DC market reposted the slowest growth, with prices up only 2.7 percent there.”

“Slower price growth will help would-be buyers feel like their goal isn't moving away faster than they can catch up. Against incomes rising at a roughly three percent pace, four percent home price growth is nearly at just the right pace,” she added.

Among the 20 cities, Las Vegas, Phoenix, and Seattle reported the highest year-over-year gains. Las Vegas led the charge with a 12 percent year-over-year price increase, followed by Phoenix at 8.1percent, and Seattle with a 6.3 percent.  According to S&P, seven of the 20 cities reported greater price increases in the year ending November 2018 as compared to October 2018.

When asked why price growth continues to slow, Dr. Ralph B. McLaughlin, Deputy Chief Economist and Executive of Research and Insights at CoreLogic, said, “A combination of cyclical and short-term factors put a damper on home-price growth in November. On the cyclical side, a maturing economic expansion set a low ceiling for continued price growth, especially given recent challenges in affordability and inventory.”

On a monthly basis before seasonal adjustment, the National Index posted a gain of 0.1 percent in November. Both the 10-City and 20-City composites reflected a decline of 0.1percent for the month.

“Current low inventories of homes for sale – about a four-month supply – are supporting home prices. New home construction trends, like sales of existing homes, peaked in late 2017 and are flat to down since then. Stable 2 percent inflation, continued employment growth, and rising wages are all favorable. Measures of consumer debt and debt service do not suggest any immediate problems,” Blitzer said.

Read the full report here.

About Author: Donna Joseph

Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected].
x

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.