Case-Shiller Home Prices: Strong Start to Year

March 28, 2017
Bottom Line: Prices rose modestly more than expected in January, up 0.9% nationally, suggesting some acceleration in the broader trend. Low supply of existing homes for sale continues to drive gains. The Seattle area remains the strongest market with prices up 1.7% in January, +12.6% versus a year ago. Cleveland, New York and Washington, DC remain the weakest markets with prices gaining between 3.4 and 4.4% over the last year. Case Shiller 20-City Home Price Index ROSE by 0.9% (seasonally adjusted) in January to 195.5, compared with market expectations for an increase of 0.7%. Home prices are 5.7% ABOVE their year ago level. Nationwide home prices are still 5.4% BELOW their April 2006 peak, near April 2005 levels and 42.9% ABOVE their January 2012 trough. On a non-seasonally adjusted basis, the home price index ROSE by 0.2% on the month. Housing prices rose in 19 of the 20 metro areas in January (on a seasonally adjusted basis) and in 20 of 20 metro areas on a year-over-year basis. New York had the smallest year-over-year increase at 3.4% while Seattle had the largest year-over-year increase at 12.6%.