Home prices in the US up 0.8% quarter on quarter with North East slowing
Home price growth in the United States was constant quarter on quarter in September with a rise of 0.8% but some locations are seeing growth and activity falling, the latest index report shows.
Areas of concern include the Northeast region where there is a combination of slow growth, negative growth and stagnation in home prices, according to the monthly home data report from real estate firm Clear Capital.
However, the West continues to maintain its 1.3% quarter on quarter growth rate and Las Vegas and San Jose were among the top three fastest growing metro areas nationwide and continue to accelerate their growth.
Las Vegas is now growing at a rapid 2.5% quarter on quarter rate and San Jose has seen a similar pattern over the past few months, with 2.2% quarterly growth. The report suggests that this demand may stem from California’s limited housing supply.
The Northeast, however, does not appear to be having the surge in demand that the West seems to enjoy. The Northeast continues to grow at 0.6% quarter on quarter, but is being dragged lower by the slow growth from two of Pennsylvania’s largest metro areas, Pittsburgh and Philadelphia, which have only grown at the rate of 0.2% and 0.4%, respectively.
Additionally, Hartford is the only metro service area to experience negative prices, down 0.1% quarter on quarter and 1.3% year on year, which is slower than the rate of inflation at 1.7%. Similarly, Rochester in New York is experiencing stagnation in home prices, up only 0.2% quarter on quarter and 1.7% year on year, matching inflation.
Despite low regional performance, the Northeast has been buoyed by Providence and New York securing positions amongst the top 15 highest performing major markets with 1.7% and 1.2% quarter on quarter growth, respectively.
‘The West and Northeast appear to be polar opposites, while one region continues to grow the other appears to be slowing and potentially showing negative growth into the future. We will continue to monitor these trends over the coming months,’ said Clear Capital chief executive officer Duane Andrews.