The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.7% annual gain in August, up from 4.8% in the previous month. The 10-City Composite annual increase came in at 4.7%, up from 3.5% in the previous month. The 20-City Composite posted a 5.2% year-over-year gain, up from 4.1% in the previous month.
Phoenix, Seattle and San Diego reported the highest year-over-year gains among the 19 cities (excluding Detroit) in August. Phoenix led the way with a 9.9% year-over-year price increase, followed by Seattle with an 8.5% increase and San Diego with a 7.6% increase. All 19 cities reported higher price increases in the year ending August 2020 versus the year ending July 2020.
The National Index posted a 1.1% month-over-month increase, while the 10-City and 20-City Composites both posted increases of 1.1% before seasonal adjustment in August. After seasonal adjustment, the National Index posted a month-over-month increase of 1.0%, while the 10-City and 20- City Composites both posted increases of 0.5%. In August, all 19 cities (excluding Detroit) reported increases before seasonal adjustment, while 17 of the 19 cities reported increases after seasonal adjustment.
Once again, home price growth is exceeding average hourly earnings (5.71% versus 4.60%).
Phoenix AZ leads the Case-Shiller 20 in year-over-year home price growth at 9.85% followed by Seattle at 8.49% YoY. On a 3-month basis (annualized), San Diego leads at 15.30% with Portland at 14.52%. In last place on a YoY basis is, no surprise, Chicago at 1.22% followed by (no surprise either) New York City at 2.82%.
Of course, the primary driver of home prices is … The Federal Reserve.