In September, national home prices continued to rise but at a slower pace. Moreover, two metro areas experienced home price declines in September.
The Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 4.6% in September, slower than the 6.9% increase in August. On a year-over-year basis, the Case-Shiller U.S. National Home Price Index rose by 5.5% in September, the lowest level since January of 2017. The Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 2.2% in September, down from 4.9% in August, confirming the deceleration in home prices for this month.
In addition to tracking home price changes nationwide, S&P also estimated home price indexes across 20 metro areas. The bars in Figure 2 show the 20 major U.S. metropolitan areas’ annual growth rates in September 2018 and in August 2018. The red line presents the national growth rates in September 2018; the green line presents the national growth rates in August 2018.
In September, the annual growth rates of the 20 metro areas ranged from -4.0% to 11.1%. Among the 20 metro areas, Phoenix, Las Vegas and Atlanta had the highest home price appreciation. Phoenix and Las Vegas led the way with an 11.1% increase, followed by Atlanta with a 9.9% increase. Half of the 20 metro areas exceeded the national average of 4.6% in September. Los Angeles, which had the highest home price appreciation in August, rose by 1.7% in September. Compared to three metro areas in August, two metro areas experienced price declines in September at a slower pace. Home prices declined by 4.0% in Seattle and 1.4% in San Diego in September, slower than the 11.2% and 2.6% declines in August, respectively. After five consecutive months of declines, home prices in New York rose by 3.5% in September.