Seattle Home Prices Growing 4x Washington DC Home Prices
This morning, S&P/Case-Shiller released their monthly Home Price Indices for September.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 6.2% annual gain in September, up from 5.9% in the previous month. The 10-City Composite annual increase came in at 5.7%, up from 5.2% the previous month. The 20-City Composite posted a 6.2% year-over-year gain, up from 5.8% the previous month.
Seattle, Las Vegas, and San Diego reported the highest year-over-year gains among the 20 cities. In September, Seattle led the way with a 12.9% year-over-year price increase, followed by Las Vegas with a 9.0% increase, and San Diego with an 8.2% increase. 13 cities reported greater price increases in the year ending September 2017 versus the year ending August 2017.
First, home prices are growing YoY four times faster than the core inflation rate (4x) and over 2x hourly earnings growth for the majority of the population.
Second, Seattle home prices are growing 4 times faster than Washington DC home prices (4x). Washington DC retains the crown for the slowest growing metro area in terms of home price growth.
A simple fix for the ellusive inflation that Janet Yellen and The Fed can’t find would be to include home prices.
Let’s see if the GOP tax plans passes that removes the household tax deduction for State and Local taxes. That should create some interesting home price changes as households will be tempted to flee high-tax area (deep purple) to less expensive areas.
Of course, you can always RENT
Written for and published by the Snake Hole Lounge ~ November 28, 2017.
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