Home-Price Growth Accelerated in November

Home-Price Growth Accelerated in November

Case-Shiller index rises 5.1% from a year earlier, as inventory of homes for sale remains unusually low

Jan. 30, 2024 9:11 am ET

Home sales in the U.S. dropped last year to the lowest level since 1995. PHOTO: MARIO TAMA/GETTY IMAGES

Home-price growth accelerated in November as the inventory of homes for sale remained unusually low.

The S&P CoreLogic Case-Shiller National Home Price Index, which measures home prices across the nation, rose 5.1% from a year earlier in November, compared with a 4.7% annual increase the prior month.

On a month-over-month basis, the index rose a seasonally adjusted 0.2% in November.

Existing-home sales fell in 2023 to the lowest level since 1995 as high mortgage rates and a shortage of homes on the market made it difficult for potential buyers to afford purchases or find homes to buy. While elevated mortgage rates have pushed buyers out of the market, home prices have held near record highs because the supply of homes for sale has remained very low. Homeowners with low rates on their current mortgages are opting to stay put rather than sell and move.

The median existing-home sale price rose 4.4% in December from a year earlier to $382,600, according to the National Association of Realtors.

The Case-Shiller index, which measures repeat-sales data, reports on a two-month delay and reflects a three-month moving average. Homes usually go under contract a month or two before they close, so the November data is based on purchase decisions made earlier this year.

The Case-Shiller 10-city index rose 6.2% over the year ended in November, following a 5.7% increase in October. The 20-city index rose 5.4%, compared with a 4.9% increase in October.

Economists surveyed by The Wall Street Journal expected the 20-city index to increase 5.7%.

Detroit had the fastest annual home-price growth in the country, at 8.2%, followed by San Diego, at 8%. The weakest market was Portland, Ore., where prices fell 0.7% on an annual basis.

A separate measure of home-price growth by the Federal Housing Finance Agency also released Tuesday found a 6.6% increase in home prices in November from a year earlier. The FHFA index rose 0.3% in November from the prior month on a seasonally adjusted basis.

Post a Comment