US Home Prices Rose 2.1% in August, but Inflation Rose Faster for the 15th Straight Month

The S&P Cotality Case-Shiller U.S. National Home Price Index rose 2.1% from a year earlier in August, up from 1.9% in July, S&P Dow Jones Indices reported on Tuesday. The Federal Housing Finance Agency's index rose 2.4% over the year.

What are the key numbers?

• 10-City Composite: up 3.6%, from 3.4%

• 20-City Composite: up 2.7%

• Leaders: Chicago +6.7% (first for the sixth month in a row), New York +6.2% and Cleveland +4.3%

• Weak spot: Seattle -2.0%

• Month to month: after seasonal adjustment the national index rose 0.3%, the 10-City 0.4% and the 20-City 0.3%. FHFA's seasonally adjusted index rose 0.3%

• Detroit: no valid August figure, because of delays in recording sales in Wayne County

 

What about inflation?

Consumer prices rose 3.4% in August, about 1.3 percentage points above home price growth, so home values fell in real terms for the 15th consecutive month, said S&P analyst Rebecca Kaufman. The gap has narrowed as nominal growth strengthened.

What does Cotality say?

Cotality's principal economist Thomas Malone noted that, on its unadjusted basis, prices dipped 0.2% from July, and that sales turnover remains at lows last seen during the Great Recession. He said that adjusted for inflation, home prices have been mostly flat since 2022. Monthly growth fell well short of typical August levels.

Why is the data "old"?

Case-Shiller is a three-month average (June, July and August), so it lags newer signals. Redfin and NAR data for September show pending sales at record lows and a rising share of price cuts, which may cool prices in later reports.