A recent S&P report suggests that home prices may be cooling.

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A recent S&P report suggests that home prices may be cooling.

The annual increases in the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index have always grown each month since early 2020 — until now. In August, the S&P 500 posted a 19.8% annual gain, which was the same as the previous month.

Analysts say it’s an indication that the housing market is beginning to level down.

“We’ve previously indicated that the housing market’s strength is fueled in part by a reaction to the Covid epidemic, as potential purchasers migrate from city apartments to suburban properties.

According to Craig Lazzara, managing director and global head of index investment strategy at S&P DJI, “the growth in house prices, while still extremely high, may be beginning to moderate.”

The 10-City Composite increased 18.6 percent year over year, down from 19.2 percent the previous month, while the 20-City Composite increased 19.7 percent year over year, down from 20% the previous month. According to Barons, consensus estimates predicted for a 20% increase.

Eight of the twenty cities reported a larger year-over-year increase in prices in August 2021 than in July 2021. Phoenix topped the way with a 33.3 percent year-over-year price increase, followed by San Diego (26.6%) and Tampa (25.9%).

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