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Case & Shiller Sales Report
Case-Shiller: Home prices hit all-time high for the 19th month in a row in December
U.S. home prices reached an all-time high for the 19th month in a row in December, as the pace of annualized increases reversed its downward trajectory, S&P Dow Jones Indices said.
Specifically, the seasonally adjusted S&P CoreLogic Case-Shiller U.S. National Home Price Index rose 3.9% year over year compared to a 3.7% annual gain in November. Month over month, the index rose 0.5%.
“National home prices have risen by 8.8% annually since 2020, led by markets in Florida, North Carolina, Southern California and Arizona,” Brian Luke, head of commodities, real and digital assets, at S&P Dow Jones Indices, said in a press release. “While our National Index continues to trend above inflation, we are a few years removed from peak home-price appreciation of 18.9% observed in 2021 and are seeing below-trend growth over the history of the index.”
In Boston, home prices rose 6.35% year over year and 0.42% month over month in December. Beantown’s annual increase was the third highest in the U.S. after New York and Chicago.
The 10-city composite index rose 5.1% on a yearly basis and 0.5% on a monthly one, while the 20-city composite rose 4.5% annually and 0.5% monthly.
“Pressure on home prices remains muted as many potential buyers and sellers decided to step away from home buying and selling activity going into the winter months,” CoreLogic Chief Economist Selma Hepp said in a statement. “And while anticipation going into the spring home-buying season is building, there are no clear signs yet that buyers will rush in the same way they did during the last couple of years, particularly given the growing concerns around continued inflation and large-scale layoffs in some regions.”
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Though home prices are still increasing across the United States, the rate of growth is slowing, according to the latest S&P CoreLogic Case-Shiller Indices.
S&P Dow Jones Indices (S&P DJI) reported a national 18% year-over-year increase in June 2022, down from the 19.9% increase seen in May. It marks the third month in a row of slowed price growth.
The 10-City and 20-City Composites also reflected similar trends. Taking into account the metro areas of Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York City, San Diego, San Francisco and Washington, D.C., the 10-City Composite showed a 17.4% year-over-year price increase, down 1.7% from May. And for the 20-City Composite, June’s year-over-year price increase was 18.6%, down 1.9% from May.
Boston condo prices are up
In the Boston metro alone, prices were up 14.9% in June, year over year.
“As the macroeconomic environment continues to be challenging, home prices may well continue to decelerate,” says Craig J. Lazzara, S&P DJI managing director, said in an analysis accompanying the report. However, the analysis also emphasized the difference between price deceleration and price decline, stating that prices are still rising “at a robust clip.” Across composites, June’s growth rates remained at or above the 95th historical percentile.
However, as mortgage rates rise, concerns over a cooling market persist. In a statement following the release from S&P DJI, CoreLogic Deputy Chief Economist Selma Hepp noted that Western markets, including Seattle, Portland, Denver and California coastal cities, saw the greatest reduction in home prices growth during June.
