These days, housing market conditions are fairly easy to understand. There are fewer homes for sale and, because of that, home prices continue to rise. It’s simple supply and demand. When there are fewer homes for buyers to choose from, the ones that are available go for a higher price. But while that’s been the case for a while now, the most recent S&P Case-Shiller Indices – considered the leading measure of U.S. home prices – offers some encouraging news. The index found that, while prices are still climbing, they’re now increasing at a slower pace. Craig J. Lazzara, managing director at S&P, says, in many of the cities the index tracks, price increases have slowed. “We continue to see very strong growth at the city level,” Lazzara said. “As was the case last month, however, in 14 of 20 cities, prices decelerated – i.e., increased by less in October than they had done in September.” But while the rate of increases has slowed, prices are still rising at a double-digit pace. In fact, October’s gain was the fourth-highest reading in the 34 years S&P has been tracking price data. (source)
Home Prices Increase But At A Slower Pace
