The Case-Shiller US National Home Price Index rose at a seasonally adjusted annual growth rate of 7.9 per cent, slower than the 9.2 per cent increase in December, according to the S&P Dow Jones Indices Tuesday.
In real terms, and as a price-to-rent ratio, [US house] prices are back to late 2003 / early 2004 – and the price-to-rent ratio maybe moving a little more sideways now, wrote Bill McBride in Calculated Risk Tuesday.
US Real House Prices, Price-to-Rent Ratio: January 2017
US HOUSE PRICE INDEX
S&P Dow Jones Indices released the US Home Price Index for January 2017 today. The Case-Shiller US National Home Price Index rose at a seasonally adjusted annual growth rate of 7.9 per cent, slower than the 9.2 per cent increase in December. House prices dropped to the lowest level in the first month of 2012. Five years later, house prices surpassed the pre-recession peak of 2006 and hit the highest level historically.
HOUSE PRICE REGIONALLY
Along with the increases in national home prices, local home prices also increased in varying degrees in January. The annual growth rate of home prices for 20 major US metropolitan areas had positive home price appreciation, except Cleveland, OH. Cleveland was the only one that had negative home price appreciation (-0.8%). The positive home price appreciation ranged from 5.2% to 22.6%. Seattle had the highest home price appreciation at 22.6%, followed by Chicago (16.5%) and Denver (14%). Miami had the lowest positive growth at 5.2 per cent. Fifteen out of the 20 metro areas had the same or higher home price appreciation than the national level of 7.9 per cent.
US HOUSE PRICE-TO-RENT RATIO
In real terms, and as a price-to-rent ratio, [US house] prices are back to late 2003 / early 2004 – and the price-to- rent ratio maybe moving a little more sideways now
– Bill McBride, Calculated Risk