In nine of 20 U.S. cities included in the S&P/Case-Shiller home price index, September house prices declined, and in six of those cities the drop was greater than the 0.1% drop in the month-over-month national index. House prices dropped the most in Washington, D.C., where they tumbled 0.4% compared with the August index.

The S&P/Case-Shiller home price index for September increased by 4.8% year-over-year for the 10-city composite index and by 4.9% for the 20-city composite index. The national index rose 4.8% year-over-year compared to a 5.1% gain in August. The consensus estimate for the year-over-year index called for growth of 4.8% in the 20-city index.

The index tracks prices on a three-month rolling average. September represents the three-month average of July, August, and September prices.

Average home prices for September are back at their levels in the spring of 2005.

Compared with their peak in the summer of 2006, home prices on both indexes remain down about 15% to 17%. Since the low of March 2012, home prices are up 28.8% and 29.6% on the 10- and 20-city indexes, respectively.

All 20 cities in the index posted year-over-year gains, and all also experienced a slowdown in year-over-year growth rates. In nine cities the month-over-month change was negative: Atlanta, down 0.3%; Boston down 0.1%; Chicago down 0.2%; Detroit down 0.2%; Phoenix down 0.1%; San Diego down 0.1%; San Francisco down 0.2%; Seattle down 0.2%; and Washington, D.C. down 0.4%.

Just two cities — Charlotte and Dallas — posted larger year-over-year gains in September and the increase in Cleveland was flat. All other cities saw either a decline or slower growth in home prices.

The chairman of the S&P index committee said:

The overall trend in home price increases continues to slow down. The National Index reported a month-over-month decrease for the first time since November 2013. … Housing starts held above one million at annual rates on gains in single family homes, sales of existing homes are gaining, builders’ sentiment is improving, foreclosures continue to be worked off and mortgage default rates are at pre-crisis levels. With the economy looking better than a year ago, the housing outlook for 2015 is stable to slightly better.

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