Home prices in cities nationwide are 4.9 percent higher than they were a year ago, down slightly from yearly gains seen in August as the once red-hot housing market slows down.
Home prices were down slightly on a monthly basis nationwide, according to the latest edition of the S&P/Case-Shiller Home Price Index. Nationally home prices were down 0.1 percent for the month, and the yearly gains were a step down from the 5.5 percent increase seen in August.
{mosads}While home values are still climbing in cities across the country, the gains posted of late are a departure from the rapid pace seen months ago, when several cities regularly saw home values climb by percentages in the double digits.
“The overall trend in home price increases continues to slow down,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.
Overall, 9 of the 20 cities tracked by the index posted monthly declines in September. And 18 of the 20 cities tracked saw a slowdown in the yearly rate of increase. For example, Las Vegas has posted double-digit gains on a yearly basis since 2012, but now posted a 9.1 percent annual increase.
But while the overall housing market may be slowing down after years of record-low mortgage rates thanks to accommodative Federal Reserve policy, analysts said there is still reason to believe 2015 will remain a good year for home prices.
Blitzer noted that data on the construction of new homes, the sale of existing homes, and the overall sentiment of homebuilders are all positive. Coupled with strong data elsewhere in the economy, the stage is set for at least a steady 2015.
“With the economy looking better than a year ago, the housing outlook for 2015 is stable to slightly better,” he said.