Eye On Housing
The S&P CoreLogic Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 6.2% in November, following a 5.1% increase in October. It was the highest gain since February 2018. On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a 3.5% annual gain in November, up from 3.2% in October. After the slowdown in the early of 2019, home price appreciation has accelerated in the last two months due to tight inventory and strong demand. Home prices are expected to continue rising as tight inventory remains a concern.
Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 2.7% in November, following a 4.3% increase in October. On a year-over-year basis, the FHFA Home Price NSA Index rose by 4.9% in November, after an increase of 5.2% in October, marking a slowdown from the previous month.
In addition to tracking home price changes nationwide, S&P also reported home price indexes across 20 metro areas. In November, all of the 20 metro areas reported home price appreciation and their annual growth rates ranged from 1.7% to 11.0%. Among the 20 metro areas, eleven metro areas exceeded the national average of 6.2%. Charlotte, Seattle and Boston had the highest home price appreciation in November. Charlotte led the way with an 11.0% increase, followed by Seattle and Boston with a 9.4% increase.
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