It was another positive month for home prices in the latest Case-Shiller
Home prices in the Chicagoland metro area rose 0.4 percent from July to August and 2.9 percent from August 2013, according to the latest Case-Shiller Home Price Indices, which Standard & Poor’s released this morning.
Though Chicagoland’s yearly increase was the third weakest among the 20 metro areas that the Case-Shiller tracks, its monthly increase was consistent with other cities – and really, considering that the housing market continue to modernize, we should resume expecting slower home price growth in the autumnal/wintry months.
National Home Prices Continue to Weaken
Nationally, the situation was quite similar:
- The 10- and 20-City Composites rose 5.5 and 5.6 percent, respectively (compared with 6.7 percent in the last report), while the National Index rose 5.1 percent (compared with 5.6 percent).
- Furthermore, the national and composite indices rose just 0.2 percent from July to August.
- Regional differences were particularly strong – the Sun Belt reported its worst annual returns in two years, while western cities showed notable slowdowns.
Blitzer – Other Housing Data Perking Up
David M. Blitzer, the chairman of the Index Committee at S&P Dow Jones Indices, said that despite the continued weakening of home sale data, other housing data has “perked up” in recent months.
“September figures for housing starts, permits and sales of existing homes were all up,” Blitzer said. “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.”
Of course, there is considerable nuance to all those cited reports – construction, as we’ve reported many times, is primarily a multifamily affair, and lending standards remain tight – but housing continues to normalize at the pricing level, which is definitely a positive development.