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
From left: 80 Columbus Circle with Robert Stiller and 737 Park Avenue with Hamad bin Khalifa Al Thani (Photos via Google Maps, Agnovos, State of Qatar, Godsfriendchuck/Wikimedia)
Mandarin Oriental, 737 Park units sell at substantial losses
Mandarin Oriental, 737 Park units sell at substantial losses
Steve Cohen and 151 East 158th Street (Getty, Google Maps)
Steve Cohen’s $30M condo sells above asking — after a 74% cut
Steve Cohen’s $30M condo sells above asking — after a 74% cut
Nicole Oge, Casa Blanca founders Hannah Bomze and Erez Zaurer (Getty, Casa Blanca)
Former Elliman, WeWork marketing chief joins “Bumble for homes” startup
Former Elliman, WeWork marketing chief joins “Bumble for homes” startup
470 Broome Street  and Rayo Withanage (Photos via Saltzman Architects, P.C. and Withanage)
From Picasso’s estate to squatting in Soho: The 470 Broome Street affair
From Picasso’s estate to squatting in Soho: The 470 Broome Street affair
Tenants are singing longer leases to lock in low rent. (Getty)
Tenants locking in longer leases as apartment rents rise
Tenants locking in longer leases as apartment rents rise
Last year more people relocated to ZIP codes with lower home values and more space. (Getty)
Long-distance movers found cheaper and larger homes in 2020
Long-distance movers found cheaper and larger homes in 2020
Federal Reserve Chair Jerome Powell (Getty)
Traders eye Fed pullback on mortgage bonds
Traders eye Fed pullback on mortgage bonds
(iStock)
Manhattan contracts bloomed to all-time highs in the spring
Manhattan contracts bloomed to all-time highs in the spring
arrow_forward_ios

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

Loading...