S & P Case-Shiller Index July 2019: Real Estate Prices Stop Slowing

House price increases have declined since March 2018, but there are signs that the housing market is warming.

The US S & P CoreLogic US Case-Shiller index, which enjoyed an excellent reputation, grew by 3.2% annually in July, the same gain being recorded in June. Prices are still down in larger cities. The composite index of 10 cities grew 1.6% a year, down from 1.9% the previous month. The 20 composite cities recorded an annual gain of 2.0%, down from 2.2% in June.

The most popular cities for home price appreciation were Phoenix, Las Vegas and Charlotte. House prices in Phoenix rose 5.8% year-over-year. In Las Vegas they rose 4.7% and Charlotte 4.6%. Seven of the 20 cities recorded larger price increases for the year ending July 2019 compared to the year ending June 2019.

"The rise in housing prices has remained positive at less than 10 per cent in most cities, and other fundamentals point to a surge in housing demand," said Philip Murphy, chief executive and head of the board. Global Index Governance at S & P Dow Jones Indices. According to the National Association of Realtors, the annual change in existing home sales was positive in July for the first time in a number of months, and the supply of homes has tightened since the peak reached in November. June."

Overall, home prices are highest in the Southwest (Phoenix and Las Vegas) and Southeast (Charlotte and Tampa), with other cities posting solid gains. These include Minneapolis, up 4.2% a year, and Detroit, up 4.1%.

Seattle was the only city to post an annual drop in prices, down 0.6%. San Francisco, Los Angeles and New York were barely positive.

Mortgage rates had gone up until 2018, making housing more expensive. This probably put downward pressure on prices. But rates began to fall early this year and especially in mid-spring, which allowed buyers to have greater buying power. Falling mortgage rates typically bring more buyers into the market, which increases competition and prices.