The September Case-Shiller 20-City Index rose 5.1% from September 2017, just below the 5.3% expected and down from 5.5% in August. Month-over-month was unchanged. The slower pace of gains is to be expected and with faster-rising wages, it represents a healthier market. “Home prices plus data on house sales and construction confirm the slowdown in housing with one factor contributing to the weaker housing market is the recent increase in mortgage rates,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.
Home price gains keep coming this morning as the FHFA reported solid numbers from the sector. U.S. house prices rose 1.3% in Q3 2018. House prices rose 6.3% from Q3 2017 to Q3 2018. Month over month prices rose 0.2% from August to September. “Home prices continued to rise in the third quarter but their upward pace is slowing somewhat," said Dr. William Doerner, Supervisory Economist. “Rising mortgage rates have cooled down housing markets - several regions and over two-thirds of states are showing slower annual gains."
The sales numbers are in for holiday sales over the five-day period from Thanksgiving Day until the end of Cyber Monday and they were impressive. On Cyber Monday, consumers spent a record $7.9 billion online, a jump of nearly 20% from last year. Black Friday produced e-commerce sales of $6.22 billion while online sales totaled $3.7 billion on Thanksgiving Day. Overall holiday sales are expected to increase between 4.3% and 4.8% this season from 2017 to a dollar amount between $717 billion and $720 billion, reports the National Retail Federation. Holiday sales totals could top $1 trillion for the first time ever, according to eMarketer, due in part to a strong U.S. economy and an extra day of shopping this season.
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