US Home Price Growth Accelerates For First Time Since Feb 2018

With the home-price bidding-war slowing dramatically, and bubble-central in the Bay Area seeing home prices fade, expectations were for a continued slowdown in national home prices, but, for the first time since Feb 2018, US Case-Shiller 20-City Composite home price growth accelerated in September.

The index of property values increased 2.1% from September 2018, higher than the median estimate of 2%.

Source: Bloomberg

The 0.36% MoM jump is the biggest since March 2018.

Prices rose from the prior month in 17 cities, led by a 0.8% increase in Seattle and a 0.7% gain in Los Angeles.

Home prices fell in San Francisco, Chicago and Boston.

All 20 cities in the index, with the exception of San Francisco, showed annual gains, led by a 6% surge in Phoenix.

As S&P writes, home prices rose in September as lower mortgage rates and a solid labor market generated buyer interest in a market where supply remains lean.