Data from August showed that home price gains decelerated across the United States. That’s according to the latest S&P CoreLogic Case-Shiller Index, which measures U.S home prices.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. census divisions, reported a 13% annual gain in August, down from 15.6% in the previous month.
Similarly, the FHFA found that house prices fell nationwide in August, down 0.7% from the previous month. House prices rose 11.9% from August 2021 to August 2022, while the previously reported 0.6% price decline in July 2022 remained unchanged.
“U.S. house prices declined in August at a similar pace to the previous month. This is the first time since March 2011 that the index has seen two consecutive months of decline.” said Will Doerner, Ph.D., supervisory economist in FHFA’s division of research and statistics. “The recent monthly decline solidifies the deceleration of 12-month house price growth that began earlier this year. Higher mortgage rates continued to put pressure on demand, notably weakening house price growth.”
S&P’s 10-City Composite annual increase came in at 12.1%, down from 14.9% in the previous month, and the 20-City Composite posted a 13.1% year-over-year gain, down from 16.0% in the previous month.
Miami, Tampa and Charlotte reported the highest year-over-year gains among the 20 cities in August, with Miami leading the way with a 28.6% year-over-year price increase. Miami was followed by Tampa in second with a 28.0% increase, and Charlotte in third with a 21.3% increase.
All 20 metros in the 20-City Composite reported lower price increases in the year ending August 2022 versus the year ending July 2022.
Month-Over-Month
Before seasonal adjustment, the U.S. National Index posted a -1.1% month-over-month decrease in August, while the 10-City and 20-City Composites both posted decreases of -1.6%.
After seasonal adjustment, the U.S. National Index posted a month-over-month decrease of -0.9%, and the 10-City and 20-City Composites both posted decreases of -1.3%.
In August, all 20 cities reported declines before and after seasonal adjustments
“The forceful deceleration in U.S. housing prices that we noted a month ago continued in our report for August 2022,” Craig J. Lazzara, Managing Director at S&P DJI. said “For example, the National Composite Index rose by 13.0% for the 12 months ended in August, down from its 15.6% year-over year growth in July. The -2.6% difference between those two monthly rates of change is the largest deceleration in the history of the index (with July’s deceleration now ranking as the second largest). We see similar patterns in our 10-City Composite and our 20-City Composite. Further, price gains decelerated in every one of our 20 cities. These data show clearly that the growth rate of housing prices peaked in the spring of 2022 and has been declining ever since.”
Continued Lazzara, “Month-over-month comparisons are consistent with these observations. All three composites declined in July, as did prices in every one of our 20 cities. On a month-over-month basis, the biggest declines occurred on the west coast, with San Francisco (-4.3%), Seattle (-3.9%) and San Diego (-2.8%) falling the most."
