October Home Prices Drop Most in Chicago and Cleveland

Housing

Published: December 30, 2014 11:35 am

Last Updated: April 28, 2020 3:00 am

In 19 of 20 U.S. cities included in the S&P/Case-Shiller home price index, October house prices declined, and in six of those cities the drop was greater than the 0.2% drop in the month-over-month national index. House prices dropped the most in Chicago, where they tumbled a full 1% compared with the September index.

The S&P/Case-Shiller home price index for October increased by 4.4% year-over-year for the 10-city composite index and by 4.5% for the 20-city composite index. The national index rose 4.6% year-over-year, compared to a 4.8% gain in September. The consensus estimate for the year-over-year index called for growth of 4.5% in the 20-city index.

The index tracks prices on a three-month rolling average. October represents the three-month average of August, September and October prices.

Average home prices for October are back at their levels in the autumn of 2004.

Compared with their peak in the summer of 2006, home prices on both indexes remain down about 16% to 17%. Since the low of March 2012, home prices are up 28.5% and 29.3% on the 10- and 20-city indexes, respectively.

All 20 cities in the index posted year-over-year gains, and all also experienced a slowdown in year-over-year growth rates. In 10 cities the month-over-month change was negative: Chicago down 1.0%; Cleveland 0.7%; Boston 0.5%; New York 0.5%; Portland 0.3%; Minneapolis 0.3%; Washington, D.C. 0.3%; Atlanta 0.2%; Charlotte 0.2%; and Seattle 0.1%.

The chairman of the S&P index committee said:

After a long period when home prices rose, but at a slower pace with each passing month, we are seeing hints that prices could end 2014 on a strong note and accelerate into 2015. … Most national economic statistics, other than those connected to housing, posted positive reports in November and early December. … Housing was somber: housing starts pulled back 1.6%, existing home sales were at 4.93 million, down 6.1%, and new home sales were 438,000, down 1.6%, all in November.

ALSO READ: Home Sales to Increase 9% in 2015

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