U.S. Home Prices Rise for Third Straight Month in April – S&P CoreLogic Case-Shiller

The S&P Case-Shiller National Home Price Index, which measures home prices across the US, rose 0.9% m/m in April 2023. The rise marked a third consecutive month of rising prices, a sign the housing market continued to strengthen. For perspective on a year-over-year basis, 20-city home price index in the US fell 1.7% April 2023, the biggest decline since April 2012, and compared to forecasts of a 2.6% drop. Seattle (-12.4%) and San Francisco (-11.1%) booked the biggest decreases while Miami (5.2%), Chicago (4.1%), Atlanta (3.5%) and Charlotte (3.4%) reported the gains.

Annual returns of the U.S. National, 10-City Composite and 20-City
Composite Home Price Indices.

“If I were trying to make a case that the decline in home prices that began in June 2022 had definitively ended in January 2023, April’s data would bolster my argument. Whether we see further support for that view in coming months will depend on the how well the market navigates the challenges posed by current mortgage rates and the continuing possibility of economic weakness”

Craig J. Lazzara, Managing Director at S&P DJI

S&P CoreLogic April 2023 Highlights

  • S&P CoreLogic Case-Shiller National Home Price Index, which measures home prices across the nation, climbed 0.9% in April compared with March on a seasonally adjusted basis.
  • On a year-over-year basis, the 20-City Composite index fell -1.7% versus -2.6% expected, down from a -1.1% annual rate the prior month.
  • The 10-City Composite showed a decrease of -1.2%, down from the -0.7% decrease in the previous month.
United States Case Shiller Home Price Index YoY
United States S&P Case-Shiller Home Price Index
United States Case Shiller Home Price Index MoM

The Federal Reserve continues to raise interest rates making mortgage financing more expensive.

Sources: S&P Dow Jones and Core Logic

“”The U.S. housing market continued to strengthen in April 2023,” says Craig J. Lazzara, Managing Director at S&P DJI. “Home prices peaked in June 2022, declined until January 2023, and then began to recover. The National Composite rose by 1.3% in April (repeating March’s performance), and now stands only 2.4% below its June 2022 peak. Our 10- and 20-CityComposites both gained 1.7% in April.

“The ongoing recovery in home prices is broadly based. Before seasonal adjustments, prices rose in all 20 cities in April (as they had also done in March). Seasonally adjusted data showed rising prices in 19 cities in April (versus 14 in March).

Craig J. Lazzara, Managing Director at S&P DJI

Location Changes Year on Year

The Southeast (+3.6%) continues as the country’s strongest region, while the West (-6.9%) remains the weakest.

April’s best performers were all in the Southeast:

  • Miami (5.2%),
  • Chicago (4.1%),
  • Atlanta (3.5%)
  • Charlotte (3.4%)

Miami, Chicago, and Atlanta reported the highest year-over-year gains among the 20 cities in April. Miami held the top spot again with a 5.2% year-over-year price increase, while Chicago broke into the top three in second with a 4.1% increase, and Atlanta reclaiming third over Charlotte with a 3.5% increase.

There are 17 of 20 cities reporting lower prices in the year ending April 2023 versus the year ending March 2023, with Boston, San Francisco and Cleveland showing slight increases of 0.1%, 0.1% and 0.9%, respectively.

Weakest performers were in the West again.

  • Seattle (-12.4%),
  • San Francisco (-11.1%),
  • San Diego (-4.1%)
  • San Francisco and Seattle peaked in May 2022, and both have declined by more
    than -10% since then.

At the other end of the scale, however, the worst eight performers are all in the Mountain or Pacific time zones, with Seattle (-12.4%) and San Francisco (-11.1%) at the bottom.

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