U.S. home prices increased 1.4% on an adjusted basis in September compared with August and were up 7.0% compared with September 2019, according to the S&P CoreLogic Case-Shiller Indices.
Month-over-month, and on an adjusted basis, the index’s 10-city and 20-city composites, measuring home prices in the largest U.S. cities, posted increases of 1.2% and 1.3% respectively.
In September, all 19 cities (Detroit has not been reporting data due to COVID) reported increases before seasonal adjustment and after seasonal adjustment. Phoenix, Seattle and San Diego continued to report the highest year-over-year gains. Phoenix led the way with an 11.4% year-over-year price increase, followed by Seattle with a 10.1% increase and San Diego with a 9.5% increase.
On an unadjusted basis, home prices increased 1.2% month-over-month.
“Housing prices were notably strong in September,” says Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices, in a statement. “The strength of the housing market was consistent nationally – all 19 cities for which we have September data rose, and all 19 gained more in the 12 months ended in September than they had done in the 12 months ended in August.”
Lazzara points out that the pace of home price appreciation accelerated for three straight months from July through September.
“Our three monthly readings since June of this year have all shown accelerating growth in home prices, and September’s results are quite strong,” he says. “The last time that the National Composite matched September’s seven percent growth rate was more than six years ago, in May 2014. The month’s increase may reflect a catch-up of COVID-depressed demand from earlier this year; it might also presage future strength, as COVID encourages potential buyers to move from urban apartments to suburban homes. The next several months’ reports should help to shed light on this question.”
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