- August Case-Shiller numbers suggest housing price trajectory is picking up again, as it was the second month where price growth was larger than the previous month. Earlier this year, price growth slid for five consecutive months and raised questions about where home prices were heading. We’re now seeing a reversing of that trend.
- Home prices in San Francisco reversed their eight month cooling trend. While good news for existing homeowners, it’s unwelcome news for homebuyers who continue to experience declining affordability in the least affordable U.S. market.
Today’s S&P/Case-Shiller National Home Price Index increased 5.3% year-over-year in August, which is the 52nd consecutive month of positive gains. August home prices were up from July’s 5% increase. The numbers suggest housing price trajectory is picking up again, as it was the second month where price growth was larger than the previous month. Earlier this year, price growth slid for five consecutive months and raised questions about where home prices were heading. We’re now seeing a reversing of that trend. While the S&P/Case-Shiller National Home Price Index is an important metric to watch, it’s worth noting that the measure is more reflective of price movements in premium homes rather than middle or lower-tier homes.
Prices in San Francisco reversed their eight month cooling trend, ticking up to 6.7% growth in August from 6% in July. While good news for existing homeowners, it’s unwelcome news homebuyers experiencing continued affordability pressures. Further up the coast, Seattle and Portland continue to see a strong resurgence in prices after noticeable cooling between 2014 and 2015. However, price growth is Portland is slowing, dropping to 11.7% year-over-year in August from 12.4% in July. Price growth in Seattle, on the other hand, picked up to 11.4% from 11.2%.
