Eye On Housing
In October, national home price appreciation reached all-time high. Home prices in all 19 major markets increased.
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 22.3% in October, faster than an 18.6% increase in September. It marks the highest annual growth rate in the history of data series since 1987. On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted an 8.4% annual gain in October, up from 7.0% in September. It is the fastest pace of home price appreciation since March 2014. Home price appreciation continued with strong demand, low interest rates and tight inventory. In October, existing home sales continued upward trend, while the inventory decreased to an all-time low of 2.5-month supply.
Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 19.3% in October, following a 22.0% increase in September. On a year-over-year basis, the FHFA Home Price NSA Index rose by 10.2% in October, after an increase of 9.2% in September. 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 October (Detroit metro area data was missing in October 2020 because there are not a sufficient number of records for the month of October for Detroit).
In October, all 19 metro areas reported positive home price appreciation and their annual growth rates ranged from 13.5% to 29.1%. Among all the 19 metro areas, six metro areas exceeded the national average of 22.3%. San Diego, Seattle and Boston had the highest home price appreciation. San Diego led the way with a 29.1% increase, followed by Seattle with a 28.3% increase and Boston with a 25.9% increase.
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