The latest data from S&P CoreLogic Case-Shiller Indices showed a modest increase in home prices nationwide during February, although eight of the 20 major metro markets tracked by the indices reported lower prices.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which encompasses g all nine U.S. census divisions, reported a 2% annual gain in February, down from 3.7% in the previous month. The 10-City Composite annual increase was 0.4% in February, down from 2.5% in the previous month, while the 20-City Composite posted a 0.4% year-over-year gain, down from 2.6% in the previous month.
Miami, Tampa, and Atlanta again reported the highest year-over-year gains among the 20 cities in February – Miami was the greatest acceleration with a 10.8% year-over-year price increase, followed by Tampa with a 7.7% increase and Atlanta in third with a 6.6% increase. However, all 20 cities reported lower prices in the year ending February versus the year ending January.
Before seasonal adjustment, the U.S. National Index posted a 0.2% month-over-month increase in February, while the 10-City and 20-City Composites posted increases of 0.3% and 0.2%, respectively. After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 0.2%, while both the 10-City and 20-City Composites posted increases of 0.1%.
“Home price trends moderated in February 2023,” said Craig J. Lazzara, managing director at S&P DJI, who observed the latest data results “pre-date the disruptions in the commercial banking industry which began in early March. Although forecasts are mixed, so far the Federal Reserve seems focused on its inflation-reduction targets, which suggests that interest rates may remain elevated, at least 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.”
;
