House prices have continued to cool since the beginning of the year, falling to 3.8% annualized growth in January. according to of S&P CoreLogic Case-Shiller National Home Price Index, was released on Tuesday. Annual growth in December was 4.4% for him.
The index recorded 292.71 in January. The unseasonally adjusted US National Index fell 0.5% month-on-month in January.
“2023 began like 2022 ended, with US home prices falling for the seventh month in a row,” he said. S&P DJIsaid in a statement.
The National Composite Index is now 5.1% below its June 2022 peak.
with federal reserve Forecasters of the week, who opted to raise interest rates again last week, expect house prices to continue to fall moderately over the next few months.
“Financial news this month has been dominated by riots in the commercial banking industry, revealing that some financial institutions’ risk management functions have failed to keep up with the level of rising interest rates,” Lazzara said in a statement. said. “Nevertheless, the Federal Reserve continues to focus on its inflation reduction target, which suggests that interest rates may continue to rise in the short term. The outlook for procurement and a weak economy is likely to remain a headwind for house prices, at least for the next few years.
Persistent challenges related to low in stockHowever, it will prevent a significant drop in housing prices.
“There are two main reasons why house prices have remained stronger than some expected. Given that supply is still very low, buyers in the market are still competing for a relatively small number of homes, which continues to push up home prices.” Bright MLS, said in a statement. “Second, while rising home prices and higher mortgage rates have forced many buyers out of the market, other would-be buyers remain optimistic about their financial situation and firm in their home buying decisions. Repeat buyers—those who sell one home to another—are able to bring record levels of home equity into their home purchases, which partially offset the impact of rising interest rates. I have.”
The December Case-Shiller House Price Index is a three-month average of the November, December, and January closing prices. Since most home sales take months from signing to closing, the data may include deals closed in his September and October.
Home price growth in the 10 Cities Composite Index also slowed in January, rising 2.5% year-on-year to 109.07. In December he 10 city index recorded an annual increase of 4.4%. Compared to the previous month, the 10-city index before seasonal adjustment in January fell 0.5%.
The 20-city house price index rose 2.5% annually to 296.88 from 4.6% in December. From the previous month, the 20 Cities Index fell 0.6% before seasonal adjustment.
Again, Miami (13.8%), Tampa (10.5%) and Atlanta (8.4%) reported the highest annual price increases among the 20 cities analyzed. Miami, Tampa, and Atlanta posted the largest year-over-year growth rates among the 20 cities analyzed, but they, along with the other 17 cities analyzed, have a 12-month and 12-month period ending December 2022. By comparison, price increases for the year to January 2023 were low.
Before seasonal adjustment, 19 of 20 cities reported monthly declines, with only Miami increasing by 0.1%.
“Miami (+13.8% year-over-year) was the best performing city in January, extending its winning streak for the sixth month in a row,” said Lazzara in a statement. “By contrast, one of the most interesting aspects of the January report is the continued weakness in West Coast home prices, with San Diego and Portland joining San Francisco and Seattle in negative year-over-year numbers. It is therefore not surprising that the Southeast (+10.2%) remains the strongest region of the country, while the West (-1.5%) is the weakest.”
