The last time the S & P CoreLogic Case-Shiller's National Composite Index hit the 5.7% growth rate in August was 25 months ago in July 2018. If it grows at similar rates in the following months, S & P P Dow Jones Indices ready to conclude that the COVID -delayed delay is behind us.
"A trend to accelerate the rise of the National Composite Index started in August 2019 but was interrupted in May and June as COVID-related restrictions resulted in slightly slowed price gains," said Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P said Dow Jones Indices in a prepared statement. "We speculated last month that the accelerated trend may have resumed, and the August results easily support that interpretation."
S&P CoreLogic Case-Shiller's NSA home price index rose 4.8% in July. The annual increase of 10-City Composite was 4.7% after 3.5% in the previous month. The 20-City Composite recorded a year-on-year increase of 5.2% compared to 4.1% in the previous month.
Lazzara said August marked the 15th consecutive month that Phoenix property prices rose faster than any other city. Phoenix saw prices jump 9.9% year over year, followed by Seattle, which is up 8.5%, and San Diego, which is up 7.6%. All 19 cities (with the exception of Detroit, where issues were reported) reported higher price increases through August 2020 than they did through July 2020.
"It's a measure of the strength of housing construction that even the worst-performing cities, Chicago (1.2%) and New York (2.8%), outperformed July," said Lazzara. "Prices were strongest in the West and Southeast and comparatively weak in the Midwest and Northeast."
Before the seasonal adjustment, the national index was up 1.1% month-on-month, while the 10-city and 20-city composite saw a 1.1% increase in August. After seasonal adjustments, the national index was up 1.0% month-over-month, while the 10-city and 20-city composite rose 0.5%. In August, all 19 cities (except Detroit) reported pre-season increases. 17 of the 19 cities reported seasonally adjusted increases.
The Zillow Real Estate Market Report too Strong home sales have recently been reported. The typical home value rose to $ 259,906 in September, and the month-over-month growth rate was 0.8%. This is the most significant jump since November 2005, according to Zillow. The quarterly growth of 2.2% was the largest increase since 2013 and the annual growth of 5.8% was the largest in nearly two years.
"Property values have been accelerating faster than ever since 2014, marking a sharp turnaround from a market that was temporarily put on hold during the pandemic outbreak this spring," said Jeff Tucker, senior economist at Zillow, in a prepared statement .