Eye On Housing
Compared to last month, national home prices rose at a faster annual growth rate in September. Seattle reported the highest gain while three metro areas (San Francisco, Chicago and Boston) 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 4.7% in September, following an increase of 4.3% in August. On a year-over-year basis, the Case-Shiller U.S. National Home Price NSA Index posted a 3.2% annual gain in September, up from 3.1% in August. Lower mortgage rates and a solid labor market boost housing demand. Home price appreciation continues with strong demand and tight inventory.
Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 7.7% in September, following a 2.5% increase in August. On a year-over-year basis, the FHFA Home Price NSA Index rose by 5.1% in September, after an increase of 4.8% in August.
In addition to tracking home price changes nationwide, S&P also reported home price indexes across 20 metro areas. In September, local home prices varied and their annual growth rates ranged from -2.1% to 9.6%. Among the 20 metro areas, ten metro areas exceeded the national average of 4.7%. Seattle, Los Angeles and Phoenix had the highest home price appreciation in September. Seattle led the way with a 9.6% increase, followed by Los Angeles with a 9.0% increase and Phoenix with a 7.5% increase. Home prices in three metro areas declined in September. They were San Francisco (-2.1%), Chicago (-1.9%) and Boston (-1.1%).
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