Case-Shiller Home Prices Continue To Move Higher

Case-Shiller home prices continue to move gradually higher, up 0.5 percent for August's 20-city adjusted index. The year-on-year rate of 5.9 percent is a 3-year high. The report shows broad-based strength: San Diego up 1.0 percent in the month, Charlotte and Las Vegas both up 0.9 percent, and Cleveland up 0.8 percent. Seattle is far out in front on a yearly basis, up 13.3 percent with most of the 20 cities in the mid-to-high single digits and with Washington DC in the rear at 3.4 percent.

The FHFA house price index has been showing a bit more strength than Case-Shiller but it's the trends of the two reports that's important, and that is climbing. Home price appreciation is an increasingly important source of household wealth in what has been a low interest rate, low wage growth economy.

Recent History Of This Indicator:
Case-Shiller home prices moved higher in July and more of the same, following strength in the prior week's FHFA house price index, is expected for September. Econoday's consensus is calling for a 0.5 percent gain in the 20-city adjusted index on top of July's 0.7 percent rise. August is a busy month for home sales and is reflected in the consensus for the unadjusted monthly index which is slightly higher, at 0.6 percent gain. The year-on-year rate is seen up 2 tenths to 6.0 percent.