Home prices rose for the 11th consecutive month in December. housing stock It remained painfully low.
Nationally, prices rose 5.5% year over year in December, the S&P CoreLogic Case-Shiller Index showed on Tuesday.
This was up from the 5% annualized increase recorded in the previous month.
On a monthly basis, prices fell 0.4%, according to the index.
The composite index for 10 cities, including Los Angeles, Miami and New York, rose at an annual rate of 7%, compared with a 6.3% increase in November.
The 20-city composite, which also tracked home prices in Dallas and Seattle, showed an annual increase of 6.1%, also up from the 5.4% figure recorded the previous month.
Price growth rates across the 20 cities vary widely, with San Diego reporting an 8.8% annual increase in December, followed by Los Angeles and Detroit, each with an 8.3% increase.
The smallest increase in December was in Portland, Oregon, where home prices rose just 0.3% from a year earlier.
However, 2023 marked the first time that all 20 cities reported year-over-year increases.
“We’re not seeing the double-digit growth we’ve seen over the past two years, but given the rising cost of mortgage financing, we’re not seeing the same trend,” said Brian Luke, S&P’s head of commodities, physical and digital assets. Any growth that exceeds that will be welcomed.” DJI, at the release.
The Case-Shiller Index is reported with a two-month lag, so you may not be able to see the latest market trends.
The interest rate-sensitive housing market largely froze last year following the Federal Reserve’s aggressive interest rate hike campaign.
But prices quickly recovered as buyers adjusted to rising mortgage rates and competed for the limited supply of housing.
This problem is not likely to be resolved any time soon.
With mortgage rates hovering near 20-year highs, sellers who locked in low rates before the pandemic began are reluctant to sell, leaving eager buyers with few options.
A separate report published by Realtor.com found that despite recent declines in mortgage rates, available housing supply will decline in early 2020 at the onset of the COVID-19 pandemic. This is still an astonishing 34.3% reduction from the previous typical supply.
