Two new data reports showed home price acceleration weakening across the country during February.
The S&P Cotality Case-Shiller US National Home Price NSA Index posted a 0.7% annual gain for February, down from a 0.8% rise in the previous month. More than half of the major metropolitan markets posted year-over-year price declines in February, with Denver (-2.2%) displacing Tampa as the weakest market while Los Angeles and Washington, DC, joined the list of decliners.
For the ninth consecutive month, inflation outpaced national home price appreciation. CPI ran 1.7 percentage points above the 0.7% annual gain, extending the streak of negative real home price returns.
“Monthly data offered a modest seasonal lift without underlying momentum,” said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices. “The National Index rose 0.3% before seasonal adjustment, but after adjustment the National and 10-City Composites were essentially flat at 0.1% and the 20-City Composite slipped 0.1%. The H1/H2 split reinforces the picture: a 1.5% gain over the first six months of the trailing 12 gave way to a 0.8% decline over the most recent six. Mortgage rates near 6% continue to weigh on affordability and transaction activity, holding nominal price growth below inflation.”
Separately, the Federal Housing Finance Agency reported home prices unchanged in February on a month-over-month basis and were up by 1.7% year-over-year The previously reported 0.1% price change in January was revised upward to 0.2%.
For the nine census divisions, seasonally adjusted monthly home price changes ranged from -1.1% in the Mountain division to +0.6% in the South Atlantic division. The 12-month changes ranged from -0.7% in the Mountain division to +4.2% in the Middle Atlantic division.
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