Annual home price gains are continuing to slow down, driving toward their lowest level in seven years, according to the latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, released Tuesday. Home prices, on average, achieved an annual 3.5 percent gain in April, down from 3.7 percent the previous month.
“Home price gains continued in a trend of broad-based moderation,” Philip Murphy, managing director and global head of index governance at S&P Dow Jones Indices, said in a statement. “Year-over-year price gains remain positive in most cities, though at diminishing rates of change.”
The highest price increases were reported in Las Vegas, Phoenix and Tampa. Home prices grew 7.1 percent year-over-year in Las Vegas, 6 percent in Phoenix and 5.6 percent in Tampa.
Ruben Gonzalez, the chief economist at Keller Williams, believes low interest rates will be a benefit to sales as we head into the busiest season of the year.
“That said, we may see some pickup in sales and prices in the next few months, but we expect home price growth to continue in the low single digits for the remainder of the year as inventory rises,” Gonzalez said. “The effect of several years of rising prices on affordability along with increasing uncertainty around the future of the economy may be weighing on housing demand.”
The Federal Housing Finance Administration (FHAFA) also released its own home sales data on Tuesday. U.S. home prices rose 0.4 percent from March to April, according to the FHFA’s monthly House Price Index (HPI) released on Tuesday. The HPI is also up 5.2 percent from 2018 to 2019
FHFA’s HPI is a weighted, repeat-sales index, that uses average price changes in repeat sales or refinancings on the same properties, whereas Case Shiller’s home price index tracks changes in the value of residential real estate nationally.
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