US Home Prices Increase Pace At 6.2% YoY, Over 2x Wage Growth and 4x “Core Inflation”

This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.

This morning, S&P/Case-Shiller released their monthly Home Price Indices for September.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 6.2% annual gain in September, up from 5.9% in the previous month. The 10-City Composite annual increase came in at 5.7%, up from 5.2% the previous month. The 20-City Composite posted a 6.2% year-over-year gain, up from 5.8% the previous month.

Seattle, Las Vegas, and San Diego reported the highest year-over-year gains among the 20 cities. In September, Seattle led the way with a 12.9% year-over-year price increase, followed by Las Vegas with a 9.0% increase, and San Diego with an 8.2% increase. 13 cities reported greater price increases in the year ending September 2017 versus the year ending August 2017.

First, home prices are growing YoY four times faster than the core inflation rate (4x) and over 2x hourly earnings growth for the majority of the population.


Second, Seattle home prices are growing 4 times faster than Washington DC home prices (4x). Washington DC retains the crown for the slowest growing metro area in terms of home price growth.


A simple fix for the ellusive inflation that Janet Yellen and The Fed can’t find would be to include home prices.

Let’s see if the GOP tax plans passes that removes the household tax deduction for State and Local taxes. That should create some interesting home price changes as households will be tempted to flee high-tax area (deep purple) to less expensive areas.

2017.11.27 - SALT 3_0



Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.