A home for sale in Boise.
A home for sale in Boise. Home prices have continued their rise across the country over the last 12 months, according to the S&P CoreLogic Case-Shiller U.S. National  Home Price NSA Index. File photo

S&P Dow Jones Indices has released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices.

Data released for July 2017 shows that home prices continued their rise across the country over the last 12 months. More than 27 years of history for these data series is available. Additional content on the housing market can also be found on S&P Dow Jones Indices’ housing blog: www.housingviews.com.

Year over year

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.9 percent annual gain in July, up from 5.8 percent the previous month. The 10-City Composite annual increase came in at 5.2 percent, up from 4.9 percent the previous month. The 20-City Composite posted a 5.8 percent year-over-year gain, up from 5.6% the previous month.

Seattle, Portland, and Las Vegas reported the highest year-over-year gains among the 20 cities. In July, Seattle led the way with a 13.5 percent year-over-year price increase, followed by Portland with a 7.6 percent increase, and Las Vegas with a 7.4 percent increase. Twelve cities reported greater price increases in the year ending July 2017 versus the year ending June 2017.

Upon tier level analysis from 2011 to present, both Seattle and Portland’s year-over-year returns show housing prices in the highest tier to be the most stable while housing prices in the low tier are the most volatile.

Month-over-month

Before seasonal adjustment, the National Index posted a month-over-month gain of 0.7 percent in July. The 10-City and 20-City Composites reported increases of 0.8 percent and 0.7 percent respectively in July. After seasonal adjustment, the National Index recorded a 0.5 percent month-over-month increase. The 10-City Composite posted a 0.4% month-over-month increase. The 20-City Composite posted a 0.3 percent month-over-month increase. All 20 cities reported increases in July before seasonal adjustment; after seasonal adjustment, 17 cities saw prices rise.

Analysis

“Home prices over the past year rose at a 5.9 percent annual rate,” says David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. “Consumers, through home buying and other spending, are the driving force in the current economic expansion. While the gains in home prices in recent months have been in the Pacific Northwest, the leadership continues to shift among regions and cities across the country. Dallas and Denver are also experiencing rapid price growth. Las Vegas, one of the hardest hit cities in the housing collapse, saw the third fastest increase in the year through July 2017.”

Blitzer said that while home prices continue to rise, other housing indicators may be leveling off.

“Sales of both new and existing homes have slipped since last March,” he said. “The Builders Sentiment Index published by the National Association of Home Builders also leveled off after March. Automobiles are the second largest consumer purchase most people make after houses. Auto sales peaked last November and have been flat to slightly lower since. The housing market will face two contradicting challenges during the rest of 2017 and into 2018. First, rebuilding following hurricanes across Texas, Florida and other parts of the south will lead to further supply pressures. Second, the Fed’s recent move to shrink its balance sheet could push mortgage rates upward.”