Is the housing market reheating?
The growth in home prices remains slow, but could potentially resurge, as demand picks up, according to the latest national S&P CoreLogic/Case-Shiller Indices, released this week. Appreciation held in July, at 3.2 percent—as was the case in June—but the 10-city and 20-city gauges in the Index, concentrated on major metropolitan regions, slowed, to 1.6 percent and 2 percent, respectively.
“Home price gains remained positive in low single digits in most cities, and other fundamentals indicate renewed housing demand,” Philip Murphy, managing director and global head of Index Governance, S&P Dow Jones Indices, says. “According to the National Association of REALTORS®, the year-over-year change in existing-home sales was positive in July for the first time in a number of months, and housing supply tightened since peaking in June.”
In July, Charlotte became the No. 3 city for gains, the Index shows, surpassing Tampa. The change indicates momentum in the South, offloaded from the West.
“The geographic flip-flop of home price growth has cemented itself strongly across the country,” Ralph McLaughlin, CoreLogic’s deputy chief economist and executive of Research and Insights, says. “Pacific markets are now making up a majority of housing markets with the lowest price growth, while second-tier markets in the South and Midwest continue to lead the country. This is a result of years of unprecedented yet unsustainable growth along the West Coast, combined with stubbornly solid economic growth that is benefitting areas initially left out of the recovery from the Great Recession.”
“Leadership remains in the Southwest (Phoenix and Las Vegas) and Southeast (Charlotte and Tampa),” Murphy says.
The complete data for the 20 markets measured by S&P:
Las Vegas, Nev.
Los Angeles, Calif.
New York, N.Y.
San Diego, Calif.
San Francisco, Calif.
Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at firstname.lastname@example.org.