AP NEWS

Cleveland-area house-price gains slowed in October, Case-Shiller report shows

December 26, 2018

Cleveland-area house-price gains slowed in October, Case-Shiller report shows

CLEVELAND, Ohio -- Local house prices are growing more slowly, but they’re still up nearly 5 percent from a year ago.

The pace of annual price increases in the Cleveland-Elyria-Mentor area has been easing since July and fell to 4.8 percent in October, according to a Wednesday report. The local drop came as collective gains dipped in 20 major cities and price growth plateaued at the national level, based on the S&P CoreLogic Case-Shiller Indices.

Prices in the Cleveland area are hovering just above their pre-recession peak - the mid-2006 height they achieved before sliding during the housing bust.

It took the metropolitan area more than a decade to recover from the collapse, and some city neighborhoods and suburbs still haven’t rebounded. Now, various reports indicate that the housing market might be softening, amid economic uncertainty, higher - though still historically low - interest rates on mortgages and financial hurdles faced by first-time buyers.

The Case-Shiller report showed that Cleveland-area price gains also slowed from September to October, even after adjusting for typical seasonal fluctuations. Data from other parts of the country were mixed, and nationwide price growth actually accelerated slightly from one month to the next.

“Reduced affordability is slowing sales of both new and existing single-family homes,” David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, said in a news release. “Sales peaked in November 2017 and have drifted down since then.”

Las Vegas, San Francisco and Phoenix posted the sharpest annual price gains in October. Washington, D.C.; New York; Chicago; San Diego; and Dallas trailed the pack, all posting more modest yearly growth rates than Cleveland.

The Case-Shiller indices are tied to repeat sales of houses and carry a two-month reporting delay, which is why October numbers are being reported in December.

AP RADIO
Update hourly