Home Price Appreciation Stalling

Home-price appreciation has been stalling in what is a key effect of the housing slowdown. Case-Shiller's 20 city year-on-year index for October (both adjusted and unadjusted) came in soft as expected, at plus 4.5 percent, down 3 tenths from September. This is the lowest rate since October 2012 and follows a full year of low double digit gains through much of 2013 and into April this year.

But the month-to-month adjusted reading is positive, showing a very strong 0.8 percent adjusted gain led by continued strength in Atlanta and including big gains for San Francisco, Tampa and Denver. Unadjusted, however, the monthly change falls to minus 0.1 percent for a second straight month.

Though unadjusted data are closely followed in this report, the adjusted monthly gain is big and hints at a shift higher ahead for the year-to-year rate. Next report on housing will be tomorrow with the pending home sales index.