Case-Shiller Home Prices: Nearly Unchanged in July, holding 5% yearly gains
September 27, 2016
Bottom Line: Home prices were unchanged in July, holding onto 5% year-on-year gains, which has been roughly the trend rate for nearly two years now. Declines were mostly led by those cities that have been the weakest - Chicago and New York, which are now up just 2.6% and 1.8%, year-on-year, respectively. The last two months saw price declines in Atlanta and San Francisco, both notable given those had been stronger markets. However, they are still up 5.5% and 6.4%, year-on-year, respectively. The strongest markets remain in the Pacific Northwest with Seattle and Portland up 11.4 and 13.9% year-over-year and 0.3% and 1.2% on the month, respectively. Case Shiller 20-City Home Price Index FELL by 0.01% (seasonally adjusted) in July to 187.7, compared with market expectations for no change. Home prices are 5.1% ABOVE their year ago level. Nationwide home prices are still 9.2% BELOW their April 2006 peak, near April 2005 levels and 37.2% ABOVE their January 2012 trough. On a non-seasonally adjusted basis, the home price index ROSE by 0.6% on the month. Housing prices rose in 11 of the 20 metro areas in July (on a seasonally adjusted basis) and are still higher in every metro area on a year-over-year basis. New York had the smallest year-over-year increase at 1.5% while Portland had the largest year-over-year increase at 13.9%.
Article by Contingent Macro Advisors