Home prices rose for the eight straight month and hit a new all-time high in September, according to the latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.
- Y-O-Y: Home prices rose nationwide by 3.9% year-over-year in September, up from 2.5% the prior month and the highest level since December 2022.
- M-O-M: National home prices rose 0.7% from August, slightly below the 0.9% reported last month.
Slight Miss. The 20-city composite index rose 3.9% in September which was just under the 4.0% that economists were projecting.
Detroit On Top. After a 5-month run, Chicago was dethroned by Detroit in September with home prices up 6.7% year-over-year in September. San Diego took the the number two spot with 6.5% growth and Chicago was third at 6.0% in September.
- On the flip side, Las Vegas is down the most with home prices down 1.9% followed by Phoenix (-1.2%) and Portland (-0.2%).
All-Time High. The national index reached a new high for the third-month in a row with an index of 312 in September.
Analysis. Craig J. Lazzara, Managing Director at S&P DJI, said that higher mortgage rates may actually be providing support for higher home prices. “On a year-to-date basis, the National Composite has risen 6.1%, which is well above the median full calendar year increase in more than 35 years of data. Although this year’s increase in mortgage rates has surely suppressed the quantity of homes sold, the relative shortage of inventory for sale has been a solid support for prices.”