In August, home prices rose 3.2 percent year-over-year—a continuation of a longer-term trend, according to the latest S&P CoreLogic/Case-Shiller Indices.
Chiefly driving momentum? Low rates, Ralph McLaughlin, CoreLogic deputy chief economist and executive of Research and Insights, says. Currently, mortgage rates sit at 3.75 percent, according to Freddie Mac.
“Persistently low mortgage rates have seemingly ended what might have otherwise been a home price race-to-the-bottom this late in our economic expansion,” McLaughlin says.
“Mortgage rates this low at the end of an economic cycle is nearly unprecedented and may be very well keeping the housing market—and U.S. economy—afloat.”
Annual appreciation rates slightly slowed in Charlotte, Chicago, Cleveland, Denver, Detroit, Los Angeles, Minneapolis and Tampa, but sank significantly in Las Vegas, from 4.7 percent to 3.3 percent year-over-year, the Case-Shiller report reveals. Additionally, appreciation entered negative territory in San Francisco, dropping to -0.1 percent year-over-year.
Bucking the trend? Phoenix, where appreciation increased from 5.8 percent to 6.3 percent year-over-year, as well as Dallas, Miami, Portland, Ore., San Diego and Seattle, which emerged out of a negative trend.
“The Southeast region included three of the top four cities. Charlotte, Tampa and Atlanta all recorded solid year-over-year performance…[and] in the Northwest, Seattle’s year-over-year change turned positive (0.7 percent) after three consecutive months of negative year-over-year price changes,” explains Philip Murphy, S&P Dow Jones Indices managing director and global head of Index Governance.
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. RISMedia is the residential real estate industry’s definitive source for news and information. Email Suzanne your real estate news ideas at firstname.lastname@example.org.