Will the Housing Market Amp Up Despite Inventory Shortage?

2019 was a big year for housing as it brought in a period of relative stability compared to the rest of the decade. And based on the S&P CoreLogic Case-Shiller U.S. National Home Price Index, the housing market’s good fortune will continue into 2020: The October results suggest the market is ready for reacceleration. Although the industry still faces a dramatic housing shortage, this is a positive sign that the market is healthy and growing.

• The S&P CoreLogic Case-Shiller U.S. National Home Price Index® rose 3.3% year-over-year in October (non-seasonally adjusted), up from 3.2% in September. Annual growth was also up from September in the smaller 10-city index (to 1.7%, from 1.5%) and in the 20-city index (to 2.2%, from 2.1%).
• Phoenix (+5.8%), Tampa (+4.9%) and Charlotte (+4.8%) reported the highest year-over-year gains among markets in the 20-city index.

2019 was a year of transition in housing, marked by a significant and consistent slowdown in home price appreciation. But as the year draws to a close, signs suggest the market has achieved a soft landing and may even be primed for a reacceleration.

The national Case-Shiller Home Price Index rose 3.3% year-over-year in October. The smaller 10- and 20-city composite indices grew more slowly, at 1.7% and 2.2% year-over-year, respectively. On a monthly (seasonally adjusted) basis, the 10-city index rose by 0.4% in October from September, and the 20-city index was also up 0.4% over the same period.

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