Home Value Growth Continues Slide
The latest S&P CoreLogic Case-Shiller National Home Price Index data show that home prices appreciated 5.2 percent annually in November 2018, down from 5.3 percent value growth in October.
At the start of 2018, home prices appreciated at more than 6 percent annually; industry economists anticipate the slowdown in value growth to continue in 2019, in line with inflation at between 2 and 3 percent, and offering some affordability breathing room for buyers as rates are expected to rise this year.
The Case-Shiller 10-city index grew 4.3 percent annually in November, but was down 4.7 percent over the previous month, and the 20-city index fell below 5 percent, growing 4.7 percent annually and coming in one basis point below expectations. David Blitzer, managing director at S&P Dow Jones Indices, tells Realtor.com, “The pace of price increases are being dampened by declining sales of existing homes and weaker affordability."
Las Vegas had the fastest home price growth in the country for the sixth straight month at 12 percent, followed by Phoenix, where prices grew 8.1 percent. Seattle returned to the top three after falling out last month, but still prices there grew just 6.3 percent— about half where growth was a year ago. About a third of the 20 cities reported greater annual increases in October than November.