Dive Brief:
-
At the end of September, home prices were higher than they were one year ago by 4.9%, according to The S&P/Case-Shiller 20-city index of property values. But compared with August 2014, prices declined—by a slight 0.01%—for the first time since January, Black Knight Financial Services reported.
-
Black Knight puts the year-over-year gain in housing prices at 4.6%, slightly lower than the Case Shiller calculations. At their peak in 2006, housing prices were 10.2% higher than they are now.
-
The pace at which home prices have accelerated has slowed over several months, both reports noted. Economist Robert Shiller told CNBC fewer investors are buying residential property, and even some homeowner-occupants have backed away from purchases because of lower expectations for appreciation.
Dive Insight:
Economic growth overall slowed down in October, largely because of the sluggish housing recovery and a slowdown in job creation across all industries, the Chicago Fed National Activity Index showed.
Shiller said he is optimistic that housing will bounce back. "It's got to come back eventually because the population continues to grow and there's a fundamental shortage of housing if they haven't been building," he said.