US home prices dropped for the fifth month in a row in November, as rising mortgage rates pushed prospective buyers out of the housing market late last year and prices continued to cool, according to the latest S&P CoreLogic Case-Shiller US National Home Price Index, released Tuesday.
\nLast July marked the first month-over-month decrease for the national index since February 2012 and that continued through November, with seasonally adjusted prices falling 0.3% month over month.
\nAll cities in the 20-city index reported declines before seasonal adjustments. After seasonal adjustments, 19 cities still reported declines, with only Detroit increasing 0.1%.
\n\u201cNovember 2022 marked the fifth consecutive month of declining home prices in the US,\u201d said Craig J. Lazzara, managing director at S&P DJI. \u201cAs the Federal Reserve moves interest rates higher, mortgage financing continues to be a headwind for home prices.\u201d
\nCompared to prices from the year before, US home prices nudged higher in November, but the pace of that growth slowed from prior months.
\nHome prices rose 7.7% in November from the year before, a smaller jump than the 9.2% growth seen in October, according to the latest S&P CoreLogic Case-Shiller US National Home Price Index, released Tuesday.
\nCities in the South led price appreciation, with Miami; Atlanta; and Tampa, Florida, all reporting the highest year-over-year gains among the cities in the 20-city index in November. Miami led the way with an 18.4% price increase from the year prior, followed by Tampa and Atlanta. All 20 cities reported lower price increases in the year ending November 2022 compared to the year ending October 2022.
\nEconomic weakness, including the possibility of a recession, could continue to hold back potential buyers, said Lazzara.
\n\u201cGiven these prospects for a challenging macroeconomic environment, home prices may well continue to weaken,\u201d he said.
\nMarket slowed in the fall
\nThe November report provides evidence of the slowing housing market during the fall, said Lisa Sturtevant, Bright MLS chief economist, but it may not show the worst yet of the housing market.
\n\u201cThe home price data released today do not account for the full impact of rising mortgage rates, which were above 7% early in November, and led to a significant pullback in buyer activity,\u201d she said. \u201cIn many local markets across the country, home prices have fallen precipitously from their summer peaks as buyers were forced out of the market due to affordability challenges.\u201d
\nBut, she said, talk of a major market correction is just hyperbole.
\n\u201cWe may have already seen the bottom of the housing market,\u201d she said.
\nMortgage rates fell throughout January, prompting more buyers to view properties and make offers. Inflation has begun to ease, boosting consumer confidence. Pending home sales improved in December and homebuilder confidence ticked up in January.
\n\u201cMany agents and brokers are expecting a robust spring housing market, and the overall mood in the market feels much more optimistic than even a month ago,\u201d she said.
\nInventory of available homes to buy remains the stubborn sticking point for many buyers. Many current homeowners are hesitant to sell when they have very attractive rates under 4% and buying a new home would mean getting a much higher rate.
\n\u201cHome shoppers are still going to find limited supply in the market and affordability is still a major challenge, particularly for first-time homebuyers,\u201d Sturtevant said. \u201cThe persistent lack of inventory, exacerbated by this \u2018rate lock,\u2019 is the main reason why we should expect prices to be stable or even rise in the year ahead.\u201d<\/p>\n
Cnn<\/p>\n
Tags\uff1a home prices<\/p>\n","protected":false},"excerpt":{"rendered":"
US home prices dropped for the fifth month in a row in November, as rising mortgage rates pushed prospective buyers out of the housing market late last year and prices continued to cool, according to the latest S&P CoreLogic Case-Shiller US National Home Price Index, released Tuesday. Last July marked the first month-over-month decrease for […]<\/p>\n","protected":false},"author":5,"featured_media":4964,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1155],"tags":[1539,2106],"class_list":["post-4963","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-home","tag-month"],"_links":{"self":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/4963","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4963"}],"version-history":[{"count":2,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/4963\/revisions"}],"predecessor-version":[{"id":5041,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/posts\/4963\/revisions\/5041"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=\/wp\/v2\/media\/4964"}],"wp:attachment":[{"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4963"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4963"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ustower.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4963"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}