Home prices continued to trend upwards in October as the benchmark national index rose for the 21st consecutive month to a new all-time high. The seasonally adjusted home prices for the national index saw a 0.3% increase MoM, and a 3.6% increase YoY. After adjusting for inflation, the MoM fell to -0.1% and YoY fell to -1.5%.
The S&P Case-Shiller benchmark 20-City composite aims to measure the value of residential real estate in the following 20 major U.S. cities: Atlanta, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Phoenix, Portland, San Diego, San Francisco, Seattle, Tampa, and Washington D.C. The benchmark 20-city index rose for the 21st consecutive month to a new all-time high in October. The seasonally adjusted home prices for the 20-city index saw a 0.3% MoM, and a 4.3% increase YoY. After adjusting for inflation, the MoM was reduced to -0.1% and YoY was reduced to -.0.9%.
The S&P Case-Shiller benchmark 10-City composite, a subset of the 20-city index, aims to measure the change in value of residential real estate in the following 10 major U.S. cities: Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco, and Washington D.C. The benchmark 10-city index rose for the 21st consecutive month to a new all-time high in October. The seasonally adjusted home prices for the 10-city index saw a 0.3% MoM, and a 4.9% increase YoY. After adjusting for inflation, the MoM dropped to -0.1% and YoY dropped to -0.3%.
Here is the analysis from today's Standard & Poor's press release:
ANALYSIS
“New York once again reigns supreme as the fastest-growing housing market with annual returns over double the national average,” says Brian D. Luke, CFA, Head of Commodities, Real & Digital Assets.
“Two markets have dominated the top ranks with New York leading all markets the past six months and San Diego the six months prior. New York is the only market sitting at all-time highs and one of just three markets with gains on the month. Accounting for seasonal adjustments shows a broader rally across the country.
“Our National Index hit its 17th consecutive all-time high, and only two markets – Tampa and Cleveland – fell during the past month,” Luke continued. “The annual returns continue to post positive inflation adjusted returns but are falling well short of the annualized gains experienced this decade. Markets in Florida and Arizona are rising, but not keeping up with inflation, and are well off the over 10% gains annually from 2020 to present. This has allowed other markets to catch up.
“With the latest data covering the period prior to the election, our national index has shown continued improvement,” Luke continued. “Removing the political uncertainly risk has led to an equity market rally; it will be telling should the similar sentiment occur among homeowners.
