Home prices for single-family properties continued their upward trajectory in September, going against typical seasonal market slowdowns, according to the most recent S&P CoreLogic / Case-Shiller Indices.
The organization reported an 19.5% annual increased in September, down from 19.8% in August. The 10-City Composite increased 17.8% YoY, down from 18.6% the previous month. The 20-City Composite increased 19.1% YoY, down from 19.6% in the previous month.
The markets with the highest YoY home price gains were Phoenix, Tampa and Miami: 33.1%, 27.7% and 25.2%, respectively. Six of the 20 cities in the 20-City Composite reported higher home price increases for the year ending September 2021 compared to August.
The complete data for the 20 markets measured by S&P:
Las Vegas, Nev.
Los Angeles, Calif.
New York, N.Y.
San Diego, Calif.
San Francisco, Calif.
What the Industry Is Saying:
“If I had to choose only one word to describe September 2021’s housing price data, the word would be ‘deceleration.’ Housing prices continued to show remarkable strength in September, though the pace of price increases declined slightly. The National Composite Index rose 19.5% from year-ago levels, with the 10- and 20-City Composites up 17.8% and 19.1%, respectively. This month, however, the rate of price growth began to decline, as each of our three composites rose less in September than in August. September’s price increase ranked in the top quintile of historical experience for all 20 cities, and in the top decile for 17 of them. That said, in 14 of 20 cities, prices decelerated—i.e., increased by less in September than in August.” — Craig J. Lazzara, Managing Director, S&P DJI
“Today’s S&P Case-Shiller Index spotlights an early fall housing market with fewer families actively looking for homes, after the start of a new, and mostly in-person, school year. Home prices advanced at 19.5% in September, pointing to a moderating pace, as an increase in new listings offered buyers more options. The other factor contributing to the slowing price growth was the jump in mortgage rates, with Freddie Mac’s 30-year fixed loan moving from 2.87% at the start of September to 3.01% by the end of the month, curbing buyers’ ability to bid up prices.
“As we approach the end of a tumultuous 2021, real estate markets continue to struggle with inventory, homes are selling quickly and prices continue to rise. However, the market has cooled since the beginning of the year, when dozens of competing bids, contingency waivers and price escalation clauses made home shopping a struggle, especially for first-time buyers. A growing number of homeowners are preparing to list in the next six months, hinting at an uncharacteristically active winter season. In addition, inflation and rising mortgage rates are squeezing many household budgets. As a result, prices are beginning to cool in some markets, with realtor.com’s® data showing that 17 out of the top 50 largest cities experienced listing price declines in October, compared with last year. For buyers, the landscape looks more promising as we head into 2022.” — George Ratiu, Manager of Economic Research, realtor.com®