Case-Shiller Reports Home Prices Strong And Rising

Case-Shiller 20-city adjusted home prices rose a strong and as-expected 0.6 percent in December. Monthly gains are all led by Western names: Denver and Seattle at 1.2 percent and San Francisco and Las Vegas at 1.1 percent. Seattle is also leading the nation for the year-on-year rate, at 12.7 percent followed by Las Vegas at 11.1 percent. The tail enders are Chicago at 2.6 percent growth, Washington DC at 2.8 percent and Cleveland at 3.5 percent.

Overall year-on-year prices are up 6.3 percent and, despite a 1 downtick from November, are still trending higher. Also trending higher despite similar hesitation in December are this morning's separate data from FHFA. Given that housing prices have been climbing strongly, a little moderation is probably a good thing and helps lower the risk of overheating, a risk that appears to be tangible out West.

Recent History Of This Indicator:
Appreciation in home prices was one of 2017's biggest economic stories and the momentum likely continued into December following November's 0.7 percent monthly and 6.4 percent yearly gains for the Case-Shiller 20-city index. December's Case-Shiller index is expected to rise 0.6 percent with the yearly increase seen at 6.3 percent.