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The national Case-Shiller Home Price Index rose at a record-high growth rate for the month of August, though slight moderation on a monthly basis suggests that the market is cooling down after a difficult year for home buying.
House price appreciation will remain high over the coming months, though further acceleration is unlikely, according to Zillow.
The national Case-Shiller Home Price Index rose 19.8% year-over-year in August. Annual growth was somewhat slower in both the smaller 20-city composite index (19.7%) and 10-city index (18.6%) The annual rate of growth was unchanged from July in the national index, and slightly slower in August than July in the 10- and 20-city indices. On a monthly (seasonally adjusted) basis, the national index was up 1.4% from July, while the 10- and 20-city indices were up 0.9% and 1.2% month-over-month, respectively.
Home price growth in the summer was assisted by federal policy that placed restrictions on foreclosures, historically low mortgage interest rates and new home supply that has been curtailed by supply chain disruptions and labor shortages. In some white-hot markets, rapid appreciation was further accelerated by existing homeowners withholding supply in anticipation of continued rapid price growth or out of worry of being unable to find another property when their role switched from seller to buyer. While home builders continue to face shortages, fiscal and monetary policy is less favorable for buyers, and sellers are encountering more resistance.
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