Home price appreciation picked up again in August (as reported this week), but the improvement was minimal.
The FHFA House Price Index rose 0.3% from July to August, bringing annual appreciation to 2.4%. July's previously reported monthly gain was revised down from 0.3% to 0.2%. Regional results remained uneven, with annual appreciation ranging from 0.5% in the Mountain division to 4.4% in the East North Central division.
Case-Shiller's national index rose 2.1% year over year, up from 1.9% in July. The 10-City Composite gained 3.6%, while the 20-City Composite rose 2.7%.
Even with the recent improvement, the inflation-adjusted trend remains negative. Consumer prices rose 3.4% annually in August, well above the 2.1% increase in national home prices. That gap has persisted for more than a year, offering some relief on a relative affordability basis even as elevated home prices and mortgage rates continue to challenge buyers.
Case-Shiller's metro-level results continued to show a sharp divide between markets. Chicago led the 20 tracked cities for the sixth consecutive month, with prices up 6.7% year over year. New York followed at 6.2%, and Cleveland gained 4.3%. Seattle remained at the other end of the spectrum, with prices down 2.0% annually, followed by Las Vegas at -1.3% and Denver at -0.8%.
FHFA House Price Index
- August YoY: +2.4%
- August MoM (SA): +0.3%
- Strongest division, YoY: East North Central, +4.4%
- Weakest division, YoY: Mountain, +0.5%
S&P Cotality Case-Shiller Indices
- U.S. National YoY: +2.1%
- 10-City Composite YoY: +3.6%
- 20-City Composite YoY: +2.7%
- National MoM (SA): +0.3%
- 10-City MoM (SA): +0.4%
