Case-Shiller Home Price Data Shows Firming

Case-Shiller data are firming but remain subdued, up an as-expected 0.2 percent in August for year-on-year appreciation of 5.1 percent, a rate that opened the year at 5.6 percent. Improvement is incremental with 14 of the 20 cities posting a monthly gain vs 13 of 20 in July.

The West leads the Case-Shiller data with San Francisco posting a 1.0 percent gain in the month followed by Seattle at 0.8 percent. Year-on-year, Portland is out in front at 11.8 percent followed by Seattle at 11.4 percent. Detroit, Atlanta, Chicago and Las Vegas all posted incremental declines in the month with New York and Cleveland at the bottom for yearly appreciation, at 1.8 percent and 2.9 percent.

Case-Shiller data, unlike FHFA data, are averaged over three months and are also value-weighted which puts greater emphasis on higher priced homes. This report along with price indications from the existing home sales as well as the new home sales reports have all been struggling to move higher this year.

Recent History Of This Indicator:
The Case-Shiller 20-city index has been lagging other indications on home prices, having posted no monthly gain since March. The year-on-year rate for July, the last period posted, is the low for the year, at plus 5.0 percent. But forecasters see the index improving slightly in August, to a monthly plus 0.2 percent for a yearly 5.1 percent.