Two newly published data reports showed housing prices continued to rise, albeit at a slower level of acceleration.
The S&P CoreLogic Case-Shiller US National Home Price NSA Index reported a 3.9% annual return for February, down from a 4.1% annual gain in the previous month. The 10-City Composite saw an annual increase of 5.2%, down from a 5.4% annual increase in the previous month, while the 20-City Composite posted a year-over-year increase of 4.5%, down from a 4.7% increase in the previous month.
The pre-seasonally adjusted US National, 10-City Composite, and 20-City Composite Indices presented slight upward trends in February, posting 0.4%, 0.8%, and 0.7% respectively. After the seasonal adjustment, the 10-City and 20-City Composite Indices posted month-over-month increases of 0.5% and 0.4%, respectively, while the US National Composite Index posted a month-over-month increase of 0.3%
New York City again reported the highest annual gain among the 20 cities with a 7.7% increase in February, followed by Chicago and Cleveland with annual increases of 7.0% and 6.6%, respectively. Only Tampa (-0.3%), Miami (-0.3%), and Charlotte (essentially flat) recorded monthly declines or no change.
“Even with mortgage rates remaining in the mid-6% range and affordability challenges lingering, home prices have shown notable resilience,” said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices. “Buyer demand has certainly cooled compared to the frenzied pace of prior years, but limited housing supply continues to underpin prices in most markets. Rather than broad declines, we are seeing a slower, more sustainable pace of price growth.”
Separately, the Federal Housing Finance Agency’s seasonally adjusted monthly House Price Index recorded a 0.1% uptick in February and a 3.9% year-over-year increase. The previously reported 0.2% price growth in January was revised upward to 0.3%.
For the nine census divisions, seasonally adjusted monthly home price changes ranged from -0.8% in the Pacific division to +1.3% in the New England division. The 12-month changes were all positive, ranging from +0.9% in the Pacific division to +7.0% in the Middle Atlantic division.
