Home Price Appreciation Edges Higher in August

Home price appreciation picked up again in August (as reported this week), but the improvement was minimal. 

The FHFA House Price Index rose 0.3% from July to August, bringing annual appreciation to 2.4%. July's previously reported monthly gain was revised down from 0.3% to 0.2%. Regional results remained uneven, with annual appreciation ranging from 0.5% in the Mountain division to 4.4% in the East North Central division.

Case-Shiller's national index rose 2.1% year over year, up from 1.9% in July. The 10-City Composite gained 3.6%, while the 20-City Composite rose 2.7%.

Even with the recent improvement, the inflation-adjusted trend remains negative. Consumer prices rose 3.4% annually in August, well above the 2.1% increase in national home prices. That gap has persisted for more than a year, offering some relief on a relative affordability basis even as elevated home prices and mortgage rates continue to challenge buyers.

Case-Shiller's metro-level results continued to show a sharp divide between markets. Chicago led the 20 tracked cities for the sixth consecutive month, with prices up 6.7% year over year. New York followed at 6.2%, and Cleveland gained 4.3%. Seattle remained at the other end of the spectrum, with prices down 2.0% annually, followed by Las Vegas at -1.3% and Denver at -0.8%.

FHFA House Price Index

• August YoY: +2.4%
• August MoM (SA): +0.3%
• Strongest division, YoY: East North Central, +4.4%
• Weakest division, YoY: Mountain, +0.5%

S&P Cotality Case-Shiller Indices

• U.S. National YoY: +2.1%
• 10-City Composite YoY: +3.6%
• 20-City Composite YoY: +2.7%
• National MoM (SA): +0.3%
• 10-City MoM (SA): +0.4%