Home prices hit all-time high again in August, but rate of increase slowed

by John Yellig on Atlanta Agent Magazine

Home prices hit yet another all-time high in August, but the pace of the rise slowed from previous readings, S&P Dow Jones Indices said. 

Specifically, the S&P CoreLogic Case-Shiller U.S. National Home Price Index rose 4.25% year over year but slid 0.13% month over month. In July, the rate of increase was 4.8%. 

“Home-price growth is beginning to show signs of strain, recording the slowest annual gain since mortgage rates peaked in 2023,” Brian Luke, head of commodities, real and digital assets, at S&P Dow Jones Indices, said in a press release. “As students went back to school, home-price shoppers appeared less willing to push the index higher than in the summer months.  

“Prices continued to decelerate for the past six months, pushing appreciation rates below their long-run average of 4.8%. After smoothing for seasonality in the data, home prices continued to reach all-time highs, for the 15th month in a row.” 

In Atlanta, home prices posted a 3.67% year-over-year gain in August, while they slid 0.03% month over month.  

The 10-city composite index rose 5.98% on a yearly basis but declined 0.36% on a monthly one, while the 20-city composite rose 5.2% annually and lost 0.32% monthly.   

“Despite much-needed optimism, brought by a sharp decline in mortgage rates in August, the boost was short lived and not enough to renew homebuyers’ interest,” CoreLogic Chief Economist Selma Hepp said in a statement. “As a result, home prices continued to weaken relative to their seasonal trend, and year-over-year gains took a step back. Nevertheless, bifurcation in housing demand and price growth remained with the West and South seeing stronger slowdown in home prices and the Northeast and Midwest continuing to see home-price gains remain robust.” 

Full article: https://atlantaagentmagazine.com/2024/10/29/case-shiller-august/