Case Shiller Home Prices Index Increases at Fastest Pace in a Year

By Mark Lieberman

Managing Director and Senior Economist

Highlights:

  • Case Shiller CoreLogic indices ROSE in April with the strongest gains in a year;
  • The 10- and 20-year indices also ROSE year-year but at more slowly than in March;
  • The price index ROSE in all 20 cities surveyed in April compared with March when 19 cities showed month-month increases;
  • The April increases were slower than March in six cities;
  • Year-year the price index ROSE in April in all 20 cities surveyed but the year-year increase was slower in 8 of the 20 cities than nit had been in March

Trends:

  • The price index rose in all four census regions led by 1.1 percent increases in the Northeast and Midwest;
  • The price index rose for the 16th straight month in Miami but fell for the third straight month in New York;

Data Source: S&P Case Shiller/Core Logic

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Home values rose for the second straight month in April, according to the Case Shiller Core-Logic Home Price Index but the year-year growth in values continued to slow.

The month-month price gains in April were the strongest since April 2018 which could bring potential sellers back into the market while putting another obstacle in the path of buyers. But the price increases come as mortgage rates have been dropping. Realtors have been citing weak inventories as a reason for slow sales of existing single-family homes, a condition which may be resolved with the price increases.

Indeed, it may be the higher prices which draw buyers back into the market, hoping to secure deals before prices go up further. The Case Shiller survey covered the same month in which the National Association of Realtors reported the median price of an existing single-family home rose 2.8 percent. Existing home sales represent about 90 percent of all home sales.

Month-month price increases were led in April by Boston where prices rose 1.9 percent followed by Detroit and San Francisco (1.6 percent), Chicago (1.2 percent), Portland and Seattle (1.1 percent)  and Atlanta, Charlotte and Los Angeles (1.0 percent).

Year-year price increases were led by Las Vegas (7.1 percent), Phoenix (6.0 percent) and Seattle (5.6 percent).

Prices rose 1.1 percent in the Midwest, 1.0 percent in the West, 0/9 percent in the Northeast and 0.7 percent in the South.

Hear Mark Lieberman this Friday on P.O.T.U.S. radio’s Morning Briefing, Sirius-XM 124, at 6:20 am Eastern Time. You can follow Mark Lieberman on Twitter at @foxeconomics.

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