The spike in home prices may be losing some of its sizzle but not home sales.
The S&P CoreLogic Case Shiller index that monitors prices in 20 U.S. metropolitan areas rose 1.2% in August. That’s the smallest gain since July of 2020, and it was less than what economists had expected.
An official at S&P DJI said the data suggest housing price growth may be beginning to decelerate.
Growth on a year-on-year basis also slowed, dipping from July’s record level to 19.7%. That was also short of estimates.
Sunny cities in the southwest and southeast reported the highest annual price gains: Phoenix, San Diego and Tampa.
Those rising prices are not deterring home buyers.
Sales of single-family homes surged to a six-month high in September. The Commerce Department reported Tuesday new home sales jumped 14%. Still the buying frenzy has abated from last year as workers return to offices and schools reopened.