Home price growth slowed faster than expected to close out 2023, according to the latest data from the Case-Shiller Index.
- Y-O-Y: The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 5.8% annual gain in December, down from 7.6% in the previous month and the lowest level since October 2020.
- M-O-M: Home prices fell month-over-month for the sixth straight month thanks to a 0.3% drop in December. It was, however, the smallest decrease since July when home prices began to fall.
Bigger Drop. The 20-City Index was projected to fall to 6.0% but actually fell to 4.6%, down from 6.8% the previous month thanks to a 0.5% month-over-month drop.
Florida On Fire. Florida continues to hold the top two spots with Miami leading the way with a 15.9% year-over-year price increase to close out 2023. Tampa took the number two spot with a 13.9% increase and Atlanta was third with a 10.4% increase.
- NOTE: Prices fell in all 20 cities in December, with a median decline of -1.1%. San Francisco took the top spot with a 4.2% decline and Seattle was the only other metro with a negative number at -1.8%.
Analysis. Craig J. Lazzara, Managing Director at S&P DJI, notes that home prices are almost down 5% from the peak. “The National Composite declined by -0.8% in December, and now stands 4.4% below its June peak. For 2022 as a whole, the National Composite rose by 5.8%, the 15th best performance in our 35-year history, although obviously well below 2021’s record-setting 18.9% gain.”