The latest S&P Dow Jones Indices
point to a housing market where prices are showing no signs of cooling down.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.9 percent annual gain in July, up from 5.8 percent in June. The 10-City Composite annual increase was 5.2 percent in July, up from 4.9 percent in the previous month, while the 20-City Composite posted a 5.8 percent year-over-year gain, up from 5.6 percent in the previous month. Among the major metro markets, Seattle saw the greatest price movement in July with a 13.5 percent year-over-year price increase, followed by Portland with a 7.6 percent upswing and Las Vegas with a 7.4 percent rise.
Before factoring in a seasonal adjustment, the National Index posted a month-over-month gain of 0.7 percent in July while the 10-City and 20-City Composites reported increases of 0.8 percent and 0.7 percent, respectively. After the seasonal adjustment, the National Index recorded a 0.5 percent month-over-month increase while the 10-City and 20-City Composited posted 0.4 percent and 0.3 percent month-over-month increases.
David M. Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, wondered if home price increases might soon slow or even stop. “While home prices continue to rise, other housing indicators may be leveling off,” he said. “Sales of both new and existing homes have slipped since last March. The Builders Sentiment Index published by the National Association of Home Builders also leveled off after March … The housing market will face two contradicting challenges during the rest of 2017 and into 2018. First, rebuilding following hurricanes across Texas, Florida and other parts of the south will lead to further supply pressures. Second, the Fed’s recent move to shrink its balance sheet could push mortgage rates upward.”