United States: Growth in home prices continues to weaken September
November 25, 2014
In September, the unadjusted S&P/Case-Shiller 20-city home price composite index was flat over the previous month. The result was below the 0.2% reading registered in the previous month but just above market expectations of a 0.1% decrease.
On an annual basis, home prices rose 4.9% over the same month last year, which was down from the 5.7% rise recorded in August and marked the weakest gain since October 2012. Moreover, S&P emphasized that while housing prices continue to rise, the overall pace is slowing; annual price increases moderated in 17 of the 20 cities surveyed. Moreover, prices are 15.7% below the July 2006 peak.
According to S&P, “the overall trend in home price increases continues to slow down. [However], other housing statistics paint a mixed to slightly positive picture. Housing starts held above one million at annual rates on gains in single family homes, sales of existing homes are gaining, builders’ sentiment is improving, foreclosures continue to be worked off and mortgage default rates are at pre-crisis levels. With the economy looking better than a year ago, the housing outlook for 2015 is stable to slightly better.”
Author: Carl Kelly, Economist