U.S. home prices rose 0.7% in March, marking the second straight month of gains, but suggesting the decline that began in 2022 may be easing, according to data from CoreLogic and the FHFA. there is
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U.S. home prices rose 0.7% year-on-year in March, marking the second straight month of annual gains and signaling the end of a year of price stagnation, according to reports. . Data released by CoreLogic on Tuesday.
Despite the razor-sharp rise, new data from the S&P CoreLogic Case-Shiller Index suggests that the nearly year-long price decline that began early last summer may be coming to an end. .
“The modest rise in home prices seen a month ago accelerated in March 2023,” S&P Dow Jones Indices managing director Craig Lazzara said in a statement. “Although two months of price increases have not resulted in a definitive recovery, March’s results suggest that the decline in house prices that began in June 2022 may have come to an end.”
The unseasonally adjusted S&P U.S. National Index rose 1.3% month-on-month from February to March. Seasonally adjusted, the rate of increase slowed to 0.4%.
A composite index of 10 and 20 cities, which tracks price increases in the country’s 10 and 20 most populous cities, rose 0.6% and 0.5% respectively from the previous month, but fell 0.8% and 1.1% respectively for the year. .
of the Federal Housing Finance Agency quarterly house price reportHome prices rose 4.3% from 2022 to the first quarter of 2023, with home prices rising in 43 states, according to the report, also released Tuesday. The three states with the highest annual growth rates were South Carolina (9.5%), North Carolina (9.4%) and Maine (8.9%), according to the FHFA.
Economists attributed the rise in March home prices to the regular seasonal surge brought on by the spring homebuying season, but they said higher mortgage rates have slashed normal activity significantly. It pointed out.
“Today’s S&P CoreLogic Case-Shiller index showed that national house prices are accelerating slightly compared to last year,” Hannah Jones, economic data analyst at Realtor.com, said in a statement. However, this spring lacks the usual energy as inventory and affordability challenges continue.” “With still high housing costs and low inventory levels, buyers face budget challenges and competition for new properties in a limited market, leading to upward pressure on the housing market. It’s kind of stuck.”
Similarly, extremely low inventories have increased competition among buyers who can afford to stay in the market, contributing to higher prices.
“Extremely low levels of new listings entering the market are keeping inventories alive and stimulating demand from the few buyers who can afford to continue shopping,” Zillow senior economist Nicole Bachaud said in a statement. Stated. “As a result, after months of stagnation and decline, prices began to recover on a monthly basis in early 2023.”
“Inventory remains a challenge in this market,” added Bachaud, adding that “affordability will also be undermined by stubbornly high prices that are unlikely to move significantly in the foreseeable future.”
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