Case-Shiller Shows Home Price Growth Matches Record High—What This Means For Homeowners
The comments below are an edited and abridged synopsis of an article by Kelsey Ramirez
Home price growth in the US continued its upward trend in August, posting a 19.8% annual gain. This increase matched the record home price gain set in July.
“The US housing market showed continuing strength in August 2021,” Craig Lazzara, Managing Director and Global Head of Index Investment Strategy for S&P Dow Jones Indices, said. “Every one of our city and composite indices stands at its all-time high, and year-over-year price growth continues to be very strong, although moderating somewhat from last month’s levels.”
The 10-City Composite, which measures home prices from the top 10 US cities, posted an 18.6% annual increase, down from July’s 19.2%. The 20-City Composite, measuring the top 20 cities, increased 19.7% annually, down from 20% the previous month.
Home prices are up significantly in some key cities. For example, Phoenix saw home prices appreciate 33.3% annually, while in San Diego and Tampa, home prices jumped 26.2% and 25.9%, respectively. Additionally, eight of the top 20 cities saw higher annual home price increases in August than in July.
On a monthly basis, national home prices increased 1.7% from July to August, while the 10-City and 20-City composites jumped 0.8% and 0.9%, respectively. But despite these increases, economists say growth is slowing.
“The US S&P CoreLogic Case-Shiller Index showed a turning point in August, up 19.8%, the same as the month before,” CoreLogic Deputy Chief Economist Selma Hepp said. “And while demand remains strong and buyers are still generally paying more for homes than asking price, the slowing acceleration in home prices suggests that buyer fatigue is setting in, particularly among higher-priced homes where the acceleration in price growth from the previous month has been larger compared to low-tier homes.”
