The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. Census divisions, reported a 19.1% annual gain in October, down from 19.7% in the previous month.
The 10-City Composite annual increase came in at 17.1%, down from 17.9% in the previous month, while the 20-City Composite posted an 18.4% year-over-year gain, down from 19.1% in the previous month.
“In October 2021, U.S. home prices moved substantially higher, but at a decelerating rate,” says Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “October’s gains were below September’s, and September’s gains were below August’s. That said, October’s 19.1% gain in the National Composite is the fourth-highest reading in the 34 years covered by our data. (The top three were the three months immediately preceding October.)”
Out of the 20 cities included in the report, Phoenix; Tampa, Florida; and Miami reported the highest year-over-year gains in October. Phoenix led the way with a 32.3% year-over-year price increase, followed by Tampa with a 28.1% increase and Miami with a 25.7% increase.
“Phoenix’s 32.3% increase led all cities for the 29th consecutive month,” continues Lazzara. “Tampa and Miami continued in second and third place in October, narrowly edging out Las Vegas, Dallas, and San Diego. Prices were strongest in the South and Southeast, but every region continued to log double-digit gains.”
Before seasonal adjustment, the U.S. National Index posted a 0.8% month-over-month increase in October, while the 10-City and 20-City Composites both posted increases of 0.8%. After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 1%, and the 10-City and 20-City Composites posted increases of 0.8% and 0.9%, respectively.
“The continuation of double-digit home price growth is good for existing homeowners who are enjoying the rise in their home equity and sellers looking to sell for top dollar,” says Ali Wolf, chief economist at Zonda. “Home buyers are still able to access low interest rates, but the cheap financing comes with a price—high home prices.”
