Case-Shiller Home Prices Post Moderate Gain

Case-Shiller's 20-city index posted a moderate and expected 0.3 percent monthly rise in September though the unadjusted year-on-year missed Econoday's consensus, moderating by 4 tenths to 5.1 percent vs expectations for 5.3 percent. The year-on-year rate, along with FHFA's 6.0 percent rate also posted this morning, are at roughly 2-year lows.

Las Vegas continues to posted very strong monthly gains, at 0.9 percent in September and matched only by Phoenix, also at 0.9 percent. Close behind are Atlanta and Tampa. Posting monthly declines are both Seattle and San Diego where monthly change has been falling into contraction the past three months.

Las Vegas also leads year-on-year appreciation at 13.5 percent followed by San Francisco at 10.0 percent. Seattle, once the perennial leader, is next at 8.4 percent. Tail enders are New York at 2.7 percent and Washington DC at 2.9 percent.

Housing has been sagging the last six months and prices are a very visible indication of the weakness. However strong the 2018 economy will prove to be, it won't include home prices which are a central source of household wealth.