Home prices in the United States saw the strongest growth on record in August, but showed signs of a potential slowdown in the coming months.
Home prices rose 19.8% year-on-year in August, matching July’s record pace, according to the National Case-Shiller Index. Prices are now 45.5% above their 2006 high.
“The slowdown in the acceleration in home prices suggests that buyer fatigue is setting in, especially among higher priced homes where the acceleration in price growth from the previous month was greater than that of higher priced homes. low-level homes, “said Selma Hepp, deputy chief economist at CoreLogic.
The 10-City Composite Index saw price gains slow to 18.6% in August from 19.2% the month before. Prices for 20-City Composite jumped 19.7% per year, short of the 20% gain in July.
Phoenix’s 33.3% increase dominated all cities for the 27th consecutive month. San Diego (+ 26.2%) and Tampa Bay (+ 25.9%) round out the top three annual gains. Seattle (+ 24.3%) was notably absent from the top three for the first time in several months, as its annual price appreciation slowed from 25.5% in July.
âThe price gains were once again widely distributed with all 20 cities increasing, although in most cases at a slower pace than a month ago,â said Craig Lazzara, Managing Director and Manager Global Index Investment Strategy at S&P Dow Jones. Indices.
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Only eight of the cities in the 20-city index reported stronger month-over-month price growth in August than in July. Prices increased at double-digit rates in all regions, but were strongest in the Southwest (+ 24.1%).
Meanwhile, new home sales rose for a fifth straight month in September, jumping 14% to a seasonally adjusted annual rate of 800,000, according to a report released by the US Census Bureau and the Department of Housing and Urban Development. Sales were 17.6% lower than the September 2020 estimate of 971,000.
Analysts polled by Refinitiv were anticipating 760,000 new homes sold, more than August’s downward revised rate of 702,000.
The median price of new homes sold last month hit a record $ 408,800, from $ 401,500 in August. Inventories fell from 6.7 months of supply to 5.9 months, but were still the second highest value from last year.