(KNSI) – The release of Tuesday’s S&P CoreLogic Case-Shiller Indices July figures marked what is being coined as a “historic deceleration” in housing price appreciation. Managing Director Craig Lazzara explains what that means.
“In the 12 months ended July, the national average was up 15.8%. In the 12 months ended June, the national average had been up 18.1%. So that change, the deceleration of negative 2.3%, it happens to be a record. In the history of the index, it has never decelerated that quickly.”
The Case-Shiller Indices use a three-month rolling average. Tuesday’s report consisted of a blend of May, June, and July prices. Mortgage rates have spiked significantly since then, coinciding with a weakening seasonal pattern as fewer families purchase new homes. Lazzara says he expects the trend to continue.
Minneapolis came in last in the 20-market S&P CoreLogic Case-Shiller Index for July, with the average home value going up by nine percent compared to a year ago. Lazzara says the gains are still impressive, even if they are lagging behind what is occurring in Tampa Bay, Florida, or Chicago, Illinois.
“What’s the median rate of increase? And I look at that for Minneapolis as far as back as we have data, the median rate of increase was 4.9%. So 9% is almost double the median, is well into the top quartile of Minneapolis’ experience.”
Lazzara says it is important to remember that real estate is local and should be evaluated that way.
___
Copyright 2022 Leighton Enterprises, Inc. All rights reserved. This material may not be broadcast, published, redistributed, or rewritten, in any way without consent.
FOLLOW US FOR INSTANT UPDATES!
FOLLOW US FOR INSTANT UPDATES!