Home price growth in the US slows for third straight month

[mahatmakanejeeves]

Source: Yahoo! Finance

Yahoo Finance

Home price growth in the US slows for third straight month

Amanda Fung · Editor
Tue, December 28, 2021, 9:00 AM

Home price growth in the U.S. has slowed for the third straight month.

Standard & Poor’s said Tuesday that its S&P CoreLogic Case-Shiller national home price index posted a 19.1% annual gain in October, down from 19.7% from September. (1) The 20-City Composite posted a 18.4% annual gain, down from 19.1% a month earlier. The 20-City results came in very close to analysts’ expectations of a 18.5% annual gain, according to Bloomberg consensus estimates.

“In October 2021, U.S. home prices moved substantially higher, but at a decelerating rate,” said Craig J. Lazzara, managing director and global head of index investment strategy at S&P DJI. “All 20 cities saw price increases in the year ended October 2021. October’s increase ranked in the top quintile of historical experience for 19 cities, and in the top decile for 17 of them. As was the case last month, however, in 14 of 20 cities, prices decelerated — i.e., increased by less in October than they had done in September.”

{snip an interactive chart}

Despite the slowdown in the pace of growth, the October reading was the fourth-highest reading in the national index’s 34 years of data, according to Lazzara. The top three were the three months immediately preceding October. Historically low inventory, low interest rates and pent-up demand from the COVID-19 pandemic have been pushing home prices upward.

{snip}

(1) https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20210629-1407760/1407760_cshomeprice-release-0629.pdf

Read more: https://finance.yahoo.com/news/case-shiller-home-price-october-2021-140005044.html

[madville]

1. I guess once it hits Ludicrous levels

It doesn’t have much more room to go up. 0.6% decline, so that $500k house is now only $497k, awesome.

[Old Crank]

2. Rate of growth declined

Not the house prices. So that $500K house actually went up last month.

[madville]

4. At least rent has only increased 30-40% since the

Pandemic began. Crazy that my mortgage payment on a new house I had built on six acres almost two years ago is only $1050 a month when an average one bedroom apartment in the city 7 miles away is now around $1300. With taxes and insurance escrowed my payment is $1340 a month.

Rent has gone up much quicker than houses it feels like, I wonder if the eviction moratoriums had an effect on that?

[cinematicdiversions]

9. The eviction moratoriums caused a shortage of rentals

So 30% increases in rent are common at least in my neck of the woods.

I was shocked that progressives supported such a disastrous policy for longer than a reasonable emergency time period (say six months) knowing full well the devastation such a policy has on our most vulnerable.

[Zorro]

3. Current link to details

https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20211228-1448566/1448566_cshomeprice-release-1228.pdf

Not good news for potential homebuyers, still good news for potential homesellers -- until they go looking for a replacement home in their neighborhood.

[madville]

6. I know people that have cashed out and downsized

I know a couple of people that walked away with some nice checks from the recent sale of their houses and have downsized to condo’s or living at the RV park/traveling. It is a great time to sell but not so much if you are upsizing or looking for something comparable for sure.

[Luciferous]

15. If my kids were out of the house I would've done the same thing. My husband still talked about

selling but it wasn't worth it for us at this time.

[flying_wahini]

5. Maybe somewhere, but not in Texas. Sales and prices continue to rise.

If there is any slowing it’s because there aren’t enough houses on the market.

[OriginalGeek]

7. I freely admit I'm slow when it comes to stuff like this

Is this good or bad or indifferent for people selling a property and building brand new elsewhere?

[DFW]

8. That is entirely dependent on where "elsewhere" is.

If you are selling a house in Silicon Valley and moving to an area in West Virginia that has been heavily polluted by coal mining, you'll probably have plenty of money to spare when you're done. On the other hand, if you're in that same part of West Virginia, looking to sell your house and move to Palo Alto, California, you will be lucky to rent a broom closet with the money you got for your house when you sell it. The three "L" factor in real estate (location, location and location) determines 99% of the price of just about every transaction.

[OriginalGeek]

11. DOH!

yeah i should have thought to include that.

All central Florida but I'm selling in a fancy, older and established HOA community and moving to the other side of town nearer downtown which is slowly becoming gentrified but not where we are yet. We will be adjacent to the neighborhoods that have fancy hipster names but ours is still just mostly old cinderblock homes.

And the reason for that is I inherited the house we are in now from my grandpa and my wife just inherited the property near downtown and we like that location better because no HOA and it is close to our kids/grandkids and close to where we lived for 30 years before moving an hour way to grandpa's house. We will be tearing down the little cinderblock house and building a bigger one but hopefully fancier.

The architect drawings so far are way cooler than I knew was possible within our budget so we are very excited by the whole thing even though the neighborhood we live in now is very nice and peaceful and the one downtown is less so. Although we did just learn that the thief/drug dealer that lived next door to my wife's aunt died 2 days ago and maybe the new renters won't be so terrible. (My wife's aunt lived there for 70 years and we know pretty much everyone in the neighborhood as we were over there nearly every day for decades and the guy next door was not the greatest guy in the world but he did bring food over to our aunt occasionally and stole from her much less than he stole from the other neighbors.)

[inthewind21]

10. 34 year high

Which out does the over inflated prices from 2005-2009. Right before the bottom fell out. The article says COVID created a pent up demand. We had millions unemployed and who knows how many staving off foreclosure with govt relief plans. Exactly who are all the people who are now going out and paying literally, in some areas, double what a property was selling for only a year to year and a half before? Yep, I see disaster brewing.

[Bengus81]

12. Retired people like me in many areas are getting hammered with prop tax increases

And of course when this bubble bursts they won't come back down.

[Mysterian]

13. It's a recipe for revolution

when only rich people can buy a house.

[mahina]

14. Inflation is scary and home values not continuing to skyrocket is scary

I guess ?

Not quibbling w OP but with the msm filter to present all info as bad news. Can’t be scared of both ya know?