S&P
Dow Jones Indices (S&P DJI) reported on Tuesday its Case-Shiller Home Price
Index, which tracks home prices in 20 U.S. metropolitan areas, soared 19.7
percent y-o-y in August, following a revised 20.0 percent y-o-y climb in July (originally
a 19.9 percent y-o-y surge).
Economists
had expected a jump of 20.0 percent y-o-y.
Phoenix
(+33.3 percent y-o-y), San Diego (+26.2 percent y-o-y) and Tampa (+25.9 percent
y-o-y) recorded the highest y-o-y increases among the 20 cities in August.
Overall, 8 of the 20 cities reported greater price gains in the year ending August
2021 versus the year ending July 2021.
Meanwhile,
the S&P/Case-Shiller U.S. National Home Price Index, which measures all
nine U.S. census divisions, climbed 19.8 percent y-o-y in August, the same pace
as in the previous month.
The
U.S. housing market showed continuing strength in August 2021,” noted Craig J.
Lazzara, Managing Director and Global Head of Index Investment Strategy at
S&P DJI. “Every one of our city and composite indices stands at its
all-time high, and year-over-year price growth continues to be very strong,
although moderating somewhat from last month’s levels,” he added. “We have
previously suggested that the strength in the U.S. housing market is being
driven in part by a reaction to the COVID pandemic, as potential buyers move
from urban apartments to suburban homes. More data will be required to
understand whether this demand surge represents an acceleration of purchases
that would have occurred anyway over the next several years, or reflects a
secular change in locational preferences. August’s data are consistent with
either explanation. August data also suggest that the growth in housing prices,
while still very strong, maybe beginning to decelerate.”