Soft Price Traction In Home Prices: Case-Shiller

Case-Shiller's data continue to point to very soft price traction in home prices, inching only 0.1 percent higher for July's 20-city adjusted index. The unadjusted index rose only 0.3 percent in the month with the year-on-year rate noticeably weak, at 5.9 percent which is down 5 tenths from June and the lowest rate since August last year.

Outright monthly contraction is once again the story for New York City, down at an adjusted 0.5 percent in the month which is very steep and the fourth decline in a row. Chicago slipped 0.1 percent for a second straight month with Boston and Dallas also in the contraction column and with two big names out West, LA and San Diego, showing no change. And the general weakness is perhaps most evident in very soft showings for two ususally strong cities for home prices, Portland at only plus 0.2 percent in the month and Seattle at plus 0.3 percent.

The exception in July is Las Vegas, rising 1.1 percent for a second month in a row and extending its year-on-year leadership at 13.7 percent. Seattle is second at 12.1 percent with San Francisco at 10.9 percent. Washington DC is at the bottom at plus 2.8 percent followed by Chicago at 3.1 percent and New York at 3.5 percent.

FHFA price data, also released this morning, confirm the clear trend -- which is slowing growth. However strong the 2018 economy may be, it doesn't include home prices which are a central source of household wealth.