Another Day, Another Record High Home Price Index

Yes, it happened again—another home price index has hit a new high. In this case, the S&P CoreLogic Case-Shiller National Home Price Index reported a 5.8 percent annual gain in June, up from 5.7 percent in May.

 

The 10-City Composite posted a 4.9 percent annual increase in June, down from five percent in May, while the 20-City Composite reported a 5.7 percent year-over-year gain, the same as the previous month. Before factoring in a seasonal adjustment, the National Index posted a month-over-month gain of 0.9 percent while the 10-City and 20-City Composites each reported a 0.7 percent increase in June. After the seasonal adjustment, the National Index recorded a 0.4 percent month-over-month increase while the 10-City Composite remained unchanged and the 20-City Composite posted a 0.1 percent month-over-month increase. All 20 cities tracked by this index reported increases in June before the seasonal adjustment, while 14 cities saw prices increase after the seasonal adjustment.

 

“The trend of increasing home prices is continuing,” said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Price increases are supported by a tight housing market. Both the number of homes for sale and the number of days a house is on the market have declined for four to five years. Currently the months-supply of existing homes for sale is low, at 4.2 months. In addition, housing starts remain below their pre-financial crisis peak as new home sales have not recovered as fast as existing home sales.”

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