The S&P CoreLogic Case-Shiller US National Home Price NSA Index reported a 3.8% annual return for November, up from a 3.6% annual gain in October. The 10-City Composite saw an annual increase of 4.9%, the same level as in the previous month, while the 20-City Composite’s year-over-year increase of 4.3% was up slightly from the 4.2% one month earlier.
The pre-seasonally adjusted US National, 20-City, and 10-City Composite Indices’ upward trends continued to reverse in November, with a -0.1% drop for the national index, a -0.1% drip for the 20-City Composite and an unchanged level for the 10-City Composite was unchanged. After the seasonal adjustment, the U.S. National, 10-City, and 20-City Composite Indices all posted a month-over-month increase of 0.4%.
New York City again reported the highest annual gain among the 20 cities with a 7.3% increase in November, followed by Chicago and Washington with annual increases of 6.2% and 5.9%, respectively. Tampa recorded the lowest return, falling 0.4%
“With the exception of pockets of above-trend performance, national home prices are trending below historical averages,” said Brian D. Luke, head of commodities, real and digital assets. “Markets in New York, Washington, DC, and Chicago are well above norms, with New York leading the way. Unsurprisingly, the Northeast was the fastest growing region, averaging a 6.1% annual gain. However, markets out west and in once red-hot Florida are trending well below average growth. Tampa’s decline is the first annual drop for any market in over a year. Returns for the Tampa market and entire Southern region rank in the bottom quartile of historical annual gains, with data going back to 1988. Despite below-trend growth, our National Index hit its 18th consecutive all-time high on a seasonally adjusted basis.”
Separately, the Federal Housing Finance Agency (FHFA) recorded a 0.3% uptick in home prices during November, as well as a 4.2% year-over-year spike. The previously reported 0.4% price growth in October was revised upward to 0.5%.
However, the FHFA also noted the 12-month growth rate in November was 2.7 percentage points lower than it was as of November 2023, the fourth straight month in which the year-over-year growth rate was lower than it had been a year earlier.
“Annual house price gains continued to moderate in November, with sales prices in all nine Census divisions exhibiting slower pace of growth than a year earlier,” said Dr. Anju Vajja, deputy director for FHFA’s Division of Research and Statistics. “The slowdown in price growth is likely due to higher mortgage rates contributing to cooling demand.”