United States: Growth in home prices continues to slide in August
October 28, 2014
In August, the unadjusted S&P/Case-Shiller 20-city home price composite index increased 0.2% over the previous month. The result was below both market expectations of a 0.4% increase and the 0.6% reading registered in the previous month.
On an annual basis, home prices rose 5.6% over the same month last year, which was down from the 6.7% rise recorded in July and marked the weakest gain since November 2012. Moreover, S&P emphasized that while housing prices continue to rise, the overall pace is slowing; annual price increases moderated in 19 of the 20 cities surveyed. Moreover, prices are 15.7% below the July 2006 peak.
According to S&P, “the deceleration in home prices continues. [However], despite softer price data, other housing data perked up. September figures for housing starts, permits and sales of existing homes were all up.”
Author: Carl Kelly, Economist