Case-Shiller 20 City Home Price Index October 2017 Now At 6.4 % Year-Over-Year Growth

The non-seasonally adjusted Case-Shiller home price index (20 cities) year-over-year rate of home price growth grew from 6.2 % to 6.4 %. The index authors stated “Since home prices are rising faster than wages, salaries, and inflation, some areas could see potential home buyers compelled to look at renting.”

Analyst Opinion of Case-Shiller HPI

Many pundits believe home prices are back in a bubble. Maybe, but the falling inventory of homes for sale keeps home prices relatively high. I continue to see this a situation of supply and demand. It is the affordability of the homes which is becoming an issue for the lower segments of consumers.

20 city unadjusted home price rate of growth grew 0.2 % month-over-month. [Econintersect uses the change in year-over-year growth from month-to-month to calculate the change in rate of growth]

Note that Case-Shiller index is an average of the last three months of data.

The market expected:

Consensus Range Consensus Actual 20-city, SA – M/M 0.6 % to 0.7 % 0.6 % +0.7 % 20-city, NSA – M/M 0.1 % to 0.5 % 0.5 % +0.2 % 20-city, NSA – Yr/Yr 6.1 % to 6.4 % 6.3 % +6.4 %

Comparing all the home price indices, it needs to be understood each of the indices uses a unique methodology in compiling their index – and no index is perfect.

The way to understand the dynamics of home prices is to watch the direction of the rate of change. Here home price growth generally appears to be stabilize (rate of growth not rising or falling).