The new Case-Shiller national house price index, now released on a monthly basis, shows seasonally-adjusted prices falling in each of April, May and June. This is a dramatic reversal from the average 0.7% monthly gain of the previous two years. While other indices have not posted outright falls, they also show annual price inflation slowing to around 6%-8%. The recovery in existing home sales – the largest segment of sales activity – means that house price inflation may not have slowed further during Q3. But by the end of the year we expect year-on-year price gains to be as weak as 4%.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services