Home-price gains hit lowest rate in a year

Gains slid below 6% amid a slowing sales market

National /
Oct.October 30, 2018 04:00 PM

(Credit: iStock)

U.S. home prices are continuing to lose steam.

In August, annual home-price gains slid below 6 percent for the first time in a year, according to the S&P CoreLogic Case-Shiller Index. The index, which measures average home prices in major metro areas, reported a 5.8 percent year-over-year gain, compared with 6 percent in July.

The latest data comes as rising prices in recent years have made homes the least affordable in a decade. Additionally, rising interest rates have made borrowing more expensive for prospective homeowners. As a result, home sales have declined.

“Following reports that home sales are flat to down, price gains are beginning to moderate,” said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “Rising prices may be pricing some potential home buyers out of the market, especially when combined with mortgage rates approaching 5 percent for 30-year fixed-rate loans.”

Compared to a year earlier, 14 of the 20 cities showed slower price growth. The highest year-over-year gains were in Las Vegas, San Francisco and Seattle — where prices ticked up 13.9 percent, 10.6 percent and 9.6 percent, respectively.

Markets including Chicago and New York fell below the national level with less than 3 percent growth. On the other hand, Los Angeles saw 6.2 percent while Miami reported 5 percent.

Rising prices and constrained inventory have also put a damper on U.S. home sales. Seasonally adjusted sales of new homes fell for the fourth straight month in September. Sales dipped 5.5 percent in September from August and 13.2 percent year over year.


Related Articles

arrow_forward_ios
Joan Collins and 110 East 57th Street #8EFG (Getty, BHS)

Soap star Joan Collins lists longtime Midtown pied-à-terre

Soap star Joan Collins lists longtime Midtown pied-à-terre
Tommy Hilfiger and his recently sold estate in Greenwich, CT. (Getty, Janet Milligan)

Tommy Hilfiger’s Greenwich estate sells for $45M

Tommy Hilfiger’s Greenwich estate sells for $45M
Jenna Ryan was part of a group who flew on a private plane from Denton, TX, to Washington, D.C., with the intention of joining the protestors (Twitter.com/DotJenna)

Texas Realtor faces criminal charges for role in Capitol attack

Texas Realtor faces criminal charges for role in Capitol attack
Porch CEO Matt Ehrlichman (iStock)

Porch snaps up four startups for over $122M

Porch snaps up four startups for over $122M
Nir Meir Asks Court to Stop Eviction (Google Maps)

Nir Meir seeks to throw out Hamptons ejection suit

Nir Meir seeks to throw out Hamptons ejection suit
Robert Frank with 1021 Park Avenue and Ben Lambert with 28 Laight Street (Getty, Google Maps)

Who’s buying and selling Manhattan homes? Last month’s notable deals

Who’s buying and selling Manhattan homes? Last month’s notable deals
Knock CFO Michelle DeBella and CEO Sean Black (Photos via Knock; PR Newswire)

Knock hires ex-Lyft, Uber exec as first CFO

Knock hires ex-Lyft, Uber exec as first CFO
New Yorkers signed leases in record numbers last month. (Getty)

Manhattan, Brooklyn rental leasing hit 12-year high in December

Manhattan, Brooklyn rental leasing hit 12-year high in December
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...