On October 26, 2021, S&P Dow Jones Indices released results for the Case-Shiller Indices. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index covering the entire USA reported a 19.8% annual gain (appreciation) in August compared to August 2020. This is the same annual gain that was reported in July. A 10 city index reported a 18.6% annual gain, down a bit from 19.2% reported in July. A 20 city index reported a 19.7% annual gain, down a bit from 20% reported in the previous month.
It could be said that gains are decelerating in large metros. On the other hand, activity traditionally slows down this time of year.
Phoenix reported the highest annual gains, of cities included in their 20 city index, with a 33.3% increase in values versus August 2020.
San Diego reported the second highest annual gains with a 26.2% increase in values versus August 2020.
Tampa reported the third highest annual gains with a 25.9% increase in values versus August 2020.
All 20 cities reported month-over-month increases in values both before and after seasonal adjustments.
The managing director of index investment strategy at S&P DJI, Craig Lazzara, previously said 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 suggests that the growth in housing prices, while still very strong, may be beginning to decelerate.