Home price growth continues to slow, but not as much as expected, according to the latest data from the Case-Shiller index…(Case-Shiller)
- Y-O-Y: The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported an 18.8% annual gain in November, down from 19.0% in the previous month.
- M-O-M: The national index posted a 0.9% gain, up from the 0.8% reported in the previous month.
BEAT THE STREET: Economists projected growth for the 20 city index would slow to 18.0%, down from 18.5% in October. However, the 20-city index came in slightly above that at 18.3%.
For the 30th month in a row, Phoenix lead all metro areas with 32.2% year-over-year home price growth followed by Tampa (29.0%) and Miami (+26.6%).
Craig J. Lazzara, Managing Director at S&P DJI, said that it’s important to put all these numbers in context…
- “For the past several months, home prices have been rising at a very high, but decelerating, rate. That trend continued in November 2021…Despite this deceleration, it’s important to remember that November’s 18.8% gain was the sixth-highest reading in the 34 years covered by our data (the top five were the months immediately preceding November).”
The Federal Housing Finance Agency actually showed price growth increasing in November, according to their Home Price Index…(FHFA)
- Y-O-Y: The FHFA Home price index reported home price appreciation at 17.5%, up from 17.4% the previous month.
- M-O-M: The national index reported 1.1% growth, unchanged from the previous month.
Will Doerner, Ph.D., Supervisory Economist in FHFA’s Division of Research and Statistics, said this continued growth rate raises concerns about affordability…
- “The last four months reflect average gains of 1.0 percentage point, down from the larger prior changes during the spring and summer months. This new trend is a welcome shift but still twice the monthly average we have seen in the last 20 years, which echoes concerns about access and affordability in housing markets.”
Regionally, the South Atlantic & Mountain led the 9 regions across the country…
- M-O-M: The South Atlantic region had the best November with 1.9% growth month-over-month followed by East South Central (1.7%) and West South Central (1.2%).
- Y-O-Y: The Mountain region had the best year with 22.8% price growth year-over-year followed by South Atlantic (+20.4%) and East South Central (+19.8%)