United States: Growth in home prices slows for 5th consecutive month in September
November 26, 2013
In September, the unadjusted S&P/Case-Shiller 20-city home price composite index rose 0.7% over the previous month, which matched market expectations. The reading came in below the 1.3% increase tallied in August.
On an annual basis, home prices rose 13.3% over the same month last year, which is an increase compared to the 12.8% rise recorded in August. The reading marks the highest level since February 2006. Despite the strong readings recorded in past months, prices still remain 19.6% below the July 2006 peak.
S&P emphasized that housing prices continue to rise, although the overall pace is slowing; monthly rates decelerated in 19 of the 20 cities surveyed between August and September. According to S&P, "housing continues to emerge from the financial crisis: the proportion of homes in foreclosure is declining and consumers' balance sheets are strengthening. The longer run question is whether household formation continues to recover and if home ownership will return to the peak levels seen in 2004."
Author: Carl Kelly, Economist