The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index covering all 9 U.S. census divisions reported another 6.5% annual gain in March, unchanged from February.
The 10-City Composite annual increase came in at 6.5%, up from 6.4% in the previous month, while The 20-City Composite posted a 6.8% year-over-year gain, unchanged from the previous month’s reading.
Seattle, Las Vegas, and San Francisco continue to report the highest year-over-year gains among the 20 cities. In March, Seattle led the way with a 13.0% year-over-year price increase, followed by Las Vegas with a 12.4% increase and San Francisco with an 11.3% increase.
Twelve of the 20 cities reported greater price increases in the year ending March 2018 versus the year ending February 2018.
“The home price increases continue with the National Index rising at 6.5% per year,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “Seattle continues to report the fastest rising prices at 13% per year, double the National Index pace. While Seattle has been the city with the largest gains for 19 months, the ranking among other cities varies.”
Las Vegas and San Francisco saw the second and third largest annual gains at 12.4% and 11.3%, respectively.
Only one year ago, they ranked 10th and 16th, respectively.
Mr. Blitzer also said that anyone who doubts that real, or inflation-adjusted, home prices are climbing rapidly should be convinced by Chicago. The Windy City reported the lowest 12-month gain among all cities in the index of 2.8%, almost a percentage point ahead of the inflation rate.
“Looking across various national statistics on sales of new or existing homes, permits for new construction, and financing terms, two figures that stand out are rapidly rising home prices and low inventories of existing homes for sale,” Mr. Blitzer added. “Months-supply, which combines inventory levels and sales, is currently at 3.8 months, lower than the levels of the 1990s, before the housing boom and bust. Until inventories increase faster than sales, or the economy slows significantly, home prices are likely to continue rising. Compared to the price gains of the last boom in the early 2000s, things are calmer today.”
“Gains in the National Index peaked at 14.5% in September 2005, more quickly than Seattle is rising now.”