The Case-Shiller (CS) National Home Price Index, reported by S&P Dow Jones Indices, jumped in September. The CS Home Price Index rose at a seasonally adjusted annual growth rate of 10.4%, the fastest in the past 36 months. After the deceleration in the beginning of 2016, house prices have accelerated since May due to tight inventory and high demand, reaching the pre-recession peak in 2006.
The Home Price Index from the Federal Housing Finance Agency (FHFA) rose at a seasonally adjusted annual rate of 7.0% in September. Similar to the CS Home Price Index, the FHFA Home Price Index is returning to its long term trend path.
Along with the increases in national home prices, local home prices also increased in varying degrees in September. Figure 2 shows the annual growth rate of home prices for 20 major U.S. metropolitan areas.
All of the 20 metro areas had positive home price appreciation, ranging from 1.4% to 11.0%. Tampa had the highest home price appreciation (11.0%), followed by Dallas (9.7%), Denver (9.2%), Atlanta (9.1%) and Seattle (8.9%). Cleveland had the lowest but still positive growth of 1.4%.