The S&P Case-Shiller 20-city home price index in the US rose 0.4% y/y in February 2023, lower than the 2.6% rise in January, and market forecasts of a flat reading. On a monthly basis house prices rose 0.1% in February, as compared to the previous month. This is the first-time home prices have risen in 8 months. The average rate for a 30-year fixed mortgage was 6.39% in the week ended April 20, up from 5.11% a year earlier, according to Freddie Mac.
Price growth eased in all 20 cities, with Miami (10.8%), Tampa (7.7%), and Atlanta (6.6%) the highest gains. Declines were seen in San Francisco (-10%), Seattle (-9.3%), San Diego (-4.1%), Portland (-3.2%), Las Vegas (-2.6%), Phoenix (-2.1%), LA (-1.3%) and Denver (-1.2%). This data came a month before the collapse of California and New York regional banks in the U.S.
“Mortgage financing and the prospect of economic weakness are likely to remain a headwind for housing prices for at least the next several months”, according to Craig J. Lazzara, Managing Director at S&P DJI. ”
S&P CoreLogic February 2023 Highlights
- S&P CoreLogic Case-Shiller 20-city home price index in the US rose 0.4% yoy in February 2023, compared to a 2.6% rise in January, forecasts of unchanged
- Smallest increase since 2012
- S&P CoreLogic Case-Shiller 20-city home price index in the US a non-seasonally adjusted 0.2% month-over-month in February of 2023
The Federal Reserve continues to raise interest rates making mortgage financing more expensive.
February’s best performers were all in the Southeast:
- Miami (10.8%),
- Tampa (7.7%),
- Atlanta (6.6%)
Prices are falling fastest in West Coast markets.
At the other end of the scale, one of the most interesting aspects of February’s report is the continued weakness in home prices on the West Coast, as San Diego and Portland joined San Francisco and Seattle in negative year-over-year territory.
Weakest performers were in the West again.
- San Francisco (-10%),
- Seattle (-9.3%),
- San Diego (-4.1%),
- Portland (-3.2%),
- Las Vegas (-2.6%),
- Phoenix (-2.1%), LA (-1.3%)
- Denver (-1.2%).
- San Francisco and Seattle peaked in May 2022, and both have declined by more
than -10% since then.
FHFA House Price Index February 2023 Highlights
The FHFA House Price Index (M/M) rose 0.5% in February from a revised 0.1% in January (from 0.2%).
Source: S&P Global
From The TradersCommunity News Desk