Home prices just barely eclipsed their growth rate from July, according to the latest data from The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index…(Case-Shiller)
- Y-O-Y: Home prices were up 19.8% in August when compared to August 2020.
- M-O-M: The U.S. National Index posted a 1.2% increase in August from July.
NOTE: The 10-City Composite annual increase came in at 18.6% which is actually down from 19.2% in the previous month. The 20-City Composite also saw a drop from the previous month posting a 19.7% year-over-year gain, a 0.3% drop from July.
Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P DJI, said in a statement the big question going forward is whether or not the impact of COVID is permeant or temporary
- “We have previously suggested that the strength in the U.S. housing market is being driven in part by a reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes. More data will be required to understand whether this demand surge represents an acceleration of purchases that would have occurred anyway over the next several years, or reflects a secular change in locational preferences. August’s data are consistent with either explanation. August data also suggest that the growth in housing prices, while still very strong, may be beginning to decelerate.”
Just a reminder, back in June I asked Bill McBride about when he thought we would see the peak. He said,
Technically August was slightly higher than July, but statistically it showed no gain. September’s numbers will show us if McBride was right. I have a feeling most projections will think he is…