U.S. house prices rose in the Q3 2019, up 1.1% according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI), while on a monthly basis, the S&P CoreLogic Case-Shiller Indices reported a 3.2% annual gain in September, up from 3.1% in the previous month. House prices rose 4.9% from Q3 2018 to Q3 2019. FHFA's seasonally adjusted monthly index for September was up 0.6% from August.
“House prices have risen every quarter for the last eight years,” said Dr. William Doerner, FHFA Supervisory Economist. “Relative to a year ago, market indices are still trending upward for the nation as a whole as well as in every census division, state, and the top 100 metro areas. Price gains, though, are continuing to slow their upward pace in a few cities with large housing markets.”
By city, home value growth has been steady similar to on the state level, according to the S&P CoreLogic Case-Shiller Indices. However, one city has notably seen values drop.
San Francisco reported some of the biggest drops in home prices in September, both month-over-month and year-over-year, according to the S&P CoreLogic Case-Shiller Indices. Notably, Noe Valley, San Francisco is expected to see its median home value of $1,839,300 drop by 6.7% over the next year, Business Insider reports, signaling investors to be cautious
"September’s report for the U.S. housing market is reassuring,” says Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices. “The national composite index rose 3.2% relative to year-ago levels, with smaller increases in our 10- and 20-city composites. Of the 20 cities in the composite, only one (San Francisco) saw a year-over-year price decline in September.”
House prices rose in all 50 states and the District of Columbia between the third quarters of 2018 and 2019. The top five states in annual appreciation were: Idaho (11.6%); Maine (7.9%); Arizona (7.9%); 4) Utah (7.8%); Indiana (7.4%). The states showing the smallest annual appreciation were: Illinois (1.9%); Connecticut (2.2%); Maryland (2.4%); South Dakota (2.7%); and Iowa (3.2%).