The latest data from the S&P CoreLogic Case-Shiller Indices affirmed that home prices ended 2023 at a higher level.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 5.5% annual gain in December, up from a 5% rise in the previous month. The 10-City Composite showed an increase of 7%, up from a 6.3% increase in the previous month, and the 20-City Composite posted a year-over-year increase of 6.1%, up from a 5.4% increase in the previous month.
San Diego reported the highest year-over-year gain among the 20 cities with an 8.8% increase in December, followed by Los Angeles and Detroit, each with an 8.3% increase. At the other end of the spectrum, Portland showed a 0.3% increase this month, holding the lowest rank after reporting the smallest year-over-year growth.
The U.S. National Index showed a continued decrease of 0.4%, while the 20-City Composite and 10-City Composite posted 0.3% and 0.2% month-over-month decreases respectively in December. After a seasonal adjustment, the U.S. National Index, the 20-City Composite, and the 10-City Composite all posted month-over-month increases of 0.2%.
“U.S. home prices faced significant headwinds in the fourth quarter of 2023,” said Brian D. Luke, head of commodities, real and digital Assets at S&P Dow Jones Indices. “However, on a seasonally adjusted basis, the S&P Case-Shiller Home Price Indices continued its streak of seven consecutive record highs in 2023. Ten of 20 markets beat prior records, with San Diego registering an 8.9% gain and Las Vegas the fastest rising market in December, after accounting for seasonal impacts.”
Luke added that while last year’s housing gains “haven’t followed such a synchronous pattern since the Covid housing boom, the term ‘a rising tide lifts all boats’ seems appropriate given broad-based performance in the U.S. housing sector. All 20 markets reported yearly gains for the first time this year, with four markets rising over 8%. Portland eked out a positive annual gain after 11 months of declines. Regionally, the Midwest and Northeast both experienced the greatest annual appreciation with 6.7%.”
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