Home prices continued to rise in September, but at a slower pace, according to a composite report released Tuesday by the Federal Housing Finance Agency and S&P Dow Jones Indices.
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U.S. home prices continued to rise, albeit at a slower pace, in September, according to a report released by the Federal Housing Finance Agency (FHFA) and S&P Dow Jones Indices (S&P DJI). FHFA blames the economic slowdown on rising home prices and mortgage rates.
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According to the S&P CoreLogic Case-Shiller Index, the national home price NSA index rose at an annual rate of 3.9%, slowing from the previous month’s 4.3% rise, and home price growth slowed. The company’s 10-city composite and 20-city composite, which track home prices in the largest U.S. cities, rose 5.2% and 4.6%, respectively, slowing from increases of 6% and 5.2% in the previous month.
On a seasonally adjusted basis, the U.S. national index rose 0.3% month-on-month, while the 20-city composite index and 10-city composite index rose 0.2% and 0.1% month-on-month.
“After a strong start heading into 2024, home price growth stalled in the third quarter,” said Brian D. Luke, CFA, head of Commodities, Physical and Digital Assets at S&P Dow Jones Indices. ” he said. “The slight decline may be due to technical factors,” he said, as the seasonally adjusted figures hit record highs for 16 consecutive years. ”
“The Northeast and Midwest continue to see above-trend price increases, led by New York, Cleveland, and Chicago, with growth of 5.7% and 5.4%, respectively,” Luke continued. “The Big Apple has held the top spot for the fifth month in a row, leading the region ahead of other regions since August 2023. The South region rose 2.8%, barely above current inflation levels. This is the lowest growth in over a year.”
New York state led the way with an annual increase of 7.5%, followed by Cleveland (7.1%) and Chicago (6.9%). Denver had the smallest increase of 0.2%.
Meanwhile, FHFA’s home price index includes data from the third quarter of this year, showing a 4.3% increase from Q3 2023 to Q3 2024. FHFA. The seasonally adjusted monthly index for September rose 0.7% from August.
“U.S. home price growth slowed in the third quarter, continuing a trend that began in the fourth quarter of last year,” said Dr. Anju Bajwa, deputy director of FHFA’s Office of Research and Statistics. “While house prices continued to rise as demand for housing exceeded fixed housing supply, rising house prices and mortgage rates likely contributed to the slowing rate of price growth.”
FHFA also reported that nationally, the U.S. housing market has continued to experience positive quarterly increases each year since early 2012.
From Q3 2023 to Q3 2024, home prices increased in 49 states. The states with the highest annual price increases were Hawaii (10.4 percent), Delaware (8.5 percent), Rhode Island (8.4 percent), Connecticut (8.2 percent), and New Jersey (8.1 percent).
Home price growth increased in 91 of the 100 largest metropolitan areas compared to the previous four quarters, with the Miami-Miami Beach-Kendall area in Florida posting the highest growth rate of 10.8%. Northport-Sarasota-Bradenton, Fla., had the biggest price decline over the same period, at 6.4%.
All nine U.S. Census divisions showed positive year-over-year changes in home prices, with the East North Central division posting the strongest growth of 6.8% from Q3 2023 to Q3 2024. did. The West South Central sector recorded the smallest increase of 1.6% over the same period. percent.
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