Home price appreciation continued to slow as we started 2023, according to the latest Case-Shiller report.
- Y-O-Y: The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 3.8% annual gain in January, down from 5.6% in the previous month and the lowest level since December 2019.
- M-O-M: The U.S. National Index posted a seasonally adjusted month-over-month decline of 0.2%, smaller than last month’s 0.3% decline and the lowest level since the market turned in July.
Nailed It. Economists projected the 20-city index appreciation would slow to 2.5% and they hit the nail on the head thanks to a 0.4% decline month-over-month.
Still In Double-Digits. While all major metros are slowing, two major Florida cities are still seeing double-digit appreciation. Miami held on to the top spot with 13.8% year-over-year price appreciation, down from 18.4% last month. Tampa was second with a 10.5% increase and Atlanta fell out of double-digit territory with 8.4% appreciation in January.
- In January, San Diego and Portland joined San Francisco and Seattle in the negative year-over-year territory.
- The Southeast continues as the country’s strongest region with 10.2% growth in January while the Wes continues to be the weakest with a 1.5% drop year-over-year.
Analysis. Craig J. Lazzara, Managing Director at S&P DJI, said 2023 picked up right where 2023 left off and that rates will likely remain elevated despite banking concerns. “2023 began as 2022 had ended, with U.S. home prices falling for the seventh consecutive month…the Federal Reserve remains focused on its inflation-reduction targets, which suggest that rates may remain elevated in the near-term. Mortgage financing and the prospect of economic weakness are therefore likely to remain a headwind for housing prices for at least the next several months.”