Areas Where Home Prices Are on the Rise

A just released report by S&P Dow Jones Indices revealed the findings from the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. According to the findings for the month of July, home prices are showing to be steady on the rise, increasing at a modest rate nationwide.  

Specifically, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers the entirety of the nine U.S. census divisions, revealed an annual gain of 4.8% (year-over-year) during the month of July. This percentage was up from the 4.3% seen just one month prior in June. Regarding the 10-City Composite, that saw an annual spike as well, bringing it up to 3.3% from June’s 2.8%. For the 20-City Composite, it saw a 3.9% gain from June’s 3.5%. 

Among these 20 cities (minus Detroit, as data for that locale is currently unavailable), the three metros of Phoenix, Seattle, and Charlotte saw the highest year-over-year gains during the month of July. Leading the pack of this trio was Phoenix, which saw a 9.2% year-over-year price increase. Following closely on Phoenix’s heels was Seattle, which saw a 7.0% increase. Charlotte rounded out the top three with a 6.0% increase. Among the 20 cities (minus Detroit), an overwhelming majority (16 of them) experienced higher price increases in the year ending July 2020 versus the year ending June 2020.  

As for the month-over-month increase, the National Index reported an uptick of 0.8%. As for the 10-City and 20-City Composites, each of those reported increases of 0.6% during July (before seasonal adjustment). When seasonally adjusted, the National Index saw a month-over-month rise of 0.4%, while the 10-City saw an increase of 0.5%, and 20-City Composites saw an of 0.6%.  

Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices, commented on the recent findings: “Housing prices rose in July. The National Composite Index gained 4.8% relative to its level a year ago, slightly ahead of June's 4.3% increase. The 10- and 20-City Composites (up 3.3% and 3.9%, respectively) also rose at an accelerating pace in July compared to June. The strength of the housing market was consistent nationally – all 19 cities for which we have July data rose, with 16 of them outpacing their June gains.” 

Lazzara added: “In previous months, we've noted that a trend of accelerating increases in the National Composite Index began in August 2019. That trend was interrupted in May and June, as price gains decelerated modestly, but now may have resumed. Obviously more data will be required before we can say with confidence that any COVID-related deceleration is behind us.”