Home Price Appreciation Soars in September

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In September, national home price appreciation accelerated, while all 19 major markets reported home price gains.

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 18.3% in September, faster than a 17.0% increase in August. It marks the highest annual growth rate since March 2013. On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a 7.0% annual gain in September, up from 5.8% in August. It is the fastest pace of home price appreciation since May 2014. Home price appreciation continued with strong demand, low interest rates and tight inventory. In September, existing home sales surged to the highest level since May 2006, while the inventory decreased to a 2.7-month supply.

Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 22.7% in September, following a 20.1% increase in August. On a year-over-year basis, the FHFA Home Price NSA Index rose by 9.1% in September, after an increase of 8.1% in August. It confirmed the acceleration in home price appreciation for this month.

In addition to tracking national home price changes, S&P reported home price indexes across 19 metro areas in September (Detroit metro area data was missing in September 2020 because there are not a sufficient number of records for the month of September for Detroit).

In September, all 19 metro areas reported positive home price appreciation and their annual growth rates ranged from 10.1% to 31.2%. Among all the 19 metro areas, seven metro areas exceeded the national average of 18.3%. Seattle, San Diego and Phoenix had the highest home price appreciation. Seattle led the way with a 31.2% increase, followed by San Diego with a 29.8% increase and Phoenix with a 26.4% increase.



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