Even among some of the notably stronger housing markets to withstand the housing crisis, home prices are continuing to fade further on a national basis, indicating that rebounds are tending to taper off with less hope ahead for substantial further gains.
Such are the findings of the latest report from national housing index S&P/Case-Shiller, which finds a 5.5% year-over-year home price increase among its 10-city composite in August, and a 5.6% increase for its 20-city composite for the same month. The figures compare to gains of 6.7% reported in July.
“The deceleration in home prices continues,” said David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices. “The Sun Belt region reported its worst annual returns since 2012, led by weakness in all three California cities—Los Angeles, San Francisco and San Diego. Despite the weaker year-over-year numbers, home prices are still showing an overall increase, as the National Index increased for its eighth consecutive month.”
Other signals, however, presented a mixed outlook, with indicators pointing to some positive housing trends in other areas, and others negative, Blitzer noted. Overall, however, the outlook skews positive.
“Despite softer price data, other housing data perked up,” he said. “September figures for housing starts, permits and sales of existing homes were all up. New home sales and builders’ confidence were weaker. Continued labor market gains, low interest rates and slower increases in home prices should support further improvements in housing.”
Written by Elizabeth Ecker
