Existing Home Prices Rise In September

Prices of existing homes showed a lot of life in September, up 0.6 percent for Case-Shiller's 20-city adjusted index which is at the high end of the Econoday consensus. Year-on-year, prices were up 5.5 percent which is 2 tenths better than expectations and the best showing since last summer.

The breadth of strength is impressive with none of the 20 cities showing a monthly decline. Monthly gains are led by the Southeast and West with Miami at plus 1.2 percent and Tampa and Atlanta both at 1.0 percent. San Francisco also posted a 1.2 percent gain with Portland at 1.0 percent. Year-on-year, San Francisco is out in front at plus 11.3 percent followed by Denver at plus 10.9 percent.

Though year-on-year home-price appreciation is tame relative to prior rates, which peaked this cycle in the low double digits in the second half of 2013 and early 2014, September's strength will not only help boost household wealth but also pull more homes into the market where supply of existing homes is very thin and holding back sales.

Recent History Of This Indicator:
Case-Shiller 20-city home prices are expected to bounce higher in September, up a consensus 0.3 percent for the 20-city adjusted index vs only a 0.1 percent increase in August. The unadjusted year-on-year rate is expected to rise 2 tenths to plus 5.3 percent. Such gains would be welcome as data in this report have been very soft, belying lack of available homes on the housing market and pointing to weakness for household wealth.