Two new data reports tracking January’s housing market found home prices are continuing to rise, albeit at a much slower pace.
The S&P Cotality Case-Shiller US National Home Price NSA Index reported a 0.9% annual gain in January, down from a 1.1% rise in the previous month. The 10-City Composite saw an annual increase of 1.7%, down from a 2.0% increase in the previous month, while the 20-City Composite posted a year-over year increase of 1.2%, down from a 1.4% rise in the previous month.
On a month-over-month measurement, the National Index and 20-City Composite dipped 0.1% while the 10-City Composite decreased 0.03% before the seasonal adjustment for January. After the seasonal adjustment, the US National, 10-City Composite, and 20-City Composite Indices each reported a monthly increase of 0.2%.
Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices, stated, “Geographic leadership remains narrow. New York leads with a 4.9% annual gain, followed by Chicago at 4.6% and Cleveland at 3.6%, while Tampa fell 2.5%. Monthly price changes were slightly negative before seasonal adjustment and modestly positive after — consistent with a market that is neither recovering nor correcting sharply. With 30-year mortgage rates still near 6%, affordability constraints show no sign of easing. Nominal prices are barely rising; in real terms, they are edging lower.”
Separately, the Federal Housing Finance Agency (FHFA) reported house prices inched up 0.1% month-over-month in January while prices rose 1.6% year-over-year. The previously reported 0.1% price change in December was revised upward to 0.3%.
For the nine census divisions, seasonally adjusted monthly home price changes ranged from -0.7% in the West South Central division to +1.7% in the East South Central division. The 12-month changes ranged from -0.8% in the West South Central division to +4.4% in the East North Central division.
FHFA Director Bill Pulte did not offer a public comment on the price increases.
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