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Home Price Index Showing Slight Decline

August report shows the first modest home price decrease of the year.

October 25, 2021

Image: Stock.adobe.com

Though the year-over-year home price index for August will likely show a 20% increase, Bill McBride reports an upcoming deceleration in house price growth in his CalculatedRisk Newsletter.

After months of steady price increases, August is seeing a slight drop-off, signaling a decline in median home prices for September and October.

Yesterday, the National Association of Realtors® (NAR) reported that median house prices were up 13.3% year-over-year (YoY) in September. This is down from the peak growth rate of 23.6% YoY in May 2021.

Last month, Case-Shiller reported that the National Index was up 19.7% YoY in July (record YoY increase for Case-Shiller). The Case-Shiller index for August will be released this coming Tuesday, October 26th and will likely show prices up about 20% YoY (similar to July).

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