Housing Ready to ‘Roll Over?’

Hot off the press release:

NEW YORK, JUNE 25, 2019 – S&P Dow Jones Indices today released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released today for April 2019 shows that the rate of home price increases across the U.S. has continued to slow.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 3.5% annual gain in April, down from 3.7% in the previous month. The 10-City Composite annual increase came in at 2.3%, up from 2.2% in the previous month. The 20-City Composite posted a 2.5% year-over-year gain, down from 2.6% in the previous month.
Las Vegas, Phoenix and Tampa reported the highest year-over-year gains among the 20 cities. In April, Las Vegas led the way with a 7.1% year-over-year price increase, followed by Phoenix with a 6.0% increase, and Tampa with a 5.6% increase. Nine of the 20 cities reported greater price increases in the year ending April 2019 versus the year ending March 2019. 

Before seasonal adjustment, the National Index posted a month-over-month increase of 0.9% in April. The 10-City and 20-City Composites both reported 0.8% increases for the month. After seasonal adjustment, the National Index recorded a 0.3% month-over-month increase in April. The 10-City Composite posted a 0.2% month-over-month increases and the 20-City Composite did not report an increase. In April, 19 of 20 cities reported increases before seasonal adjustment, while 14 of 20 cities reported increases after seasonal adjustment.
“Home price gains continued in a trend of broad-based moderation,” says Philip Murphy, Managing Director and Global Head of Index Governance at S&P Dow Jones Indices. “Year-over-year price gains remain positive in most cities, though at diminishing rates of change. Seattle is a notable exception, where the YOY change has decreased from 13.1% in April 2018 to 0.0% in April 2019.”

As always we add our own footnotes to the report:  First is that these are actual prices – not adjusted for inflation.  Secondly, these are sales prices, so the actual return on investment to the owners is lower due to commissions and selling costs.

After the data, though, the Dow went slightly positive.  We note, however, that with the exception of the British FTSE-100 index being a tad higher, everything else was bleeding globally.  China was down 1.15% overnight, so we think a pause in the manic rally could be at hand, but time will tell…

Moron the ‘morrow…

5 thoughts on “Housing Ready to ‘Roll Over?’”

  1. Thanks to Trump, the Federal Reserve is considering lowering interest rates instead of raising them to 4% thereby killing the stock market rally. Trump would, rightly so, have no part of 4%, he knew better. There is virtually no inflation & with our technology… the Internet of Things, Blockchain, & AI just beginning to bloom, USA productivity is on the up. China is topping out as you see Apple asking it suppliers to move 30% of their business out of China which is good for the USA.

    If you don’t believe the USA is the most innovative & productive country in the world, just look at the new IPO’s coming out. These are the stocks of the future. The old school Warren Buffet portfolio will continue to go up in this Bull market but their stock prices are supported by stock buybacks.

    Conclusion: Bull Market Continues.

    • A fine example of someone who gets their news from the MSM. You don’t think it’s a troll do you , George? If so, pat yourself on the back.

  2. History? With Obama out all the foreign money came home with Fed rate increases… pensions and 401ks seemed better, housing picked up, stocks went from 19K to 26K… then trade war… Walmart costs same, China picked up the tab (Deutch bank under 8/share.. broken but ATMs work, negative math okay). Now dollar going down, Fed relax rates, bonds off mark..CHina regime change inbound…

  3. “There is virtually no inflation …”

    … which part of the world are YOU inhabiting? ;-)

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