Home prices rose 5.5% annually in December, up from 5% in November, according to data released Tuesday by S&P Global and the Federal Housing Finance Agency.
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U.S. home price growth hit another record high in late 2023, with December marking the seventh consecutive month of price gains, according to data released Tuesday by the FHFA and S&P Global.
House prices rose 5.5% annually in December, up from 5% in November.Data from Standard & Poor’s showed prices fell 0.4% month-on-month, the biggest monthly drop since January 2023 Keith Hiller House price index.
“The U.S. housing rally in 2023 has not followed such a synchronized pattern since the COVID-19 housing boom,” Brian Luke, head of commodities real and digital assets at S&P Dow Jones Indices, said in a statement. Given the broader performance of the U.S. real estate sector, the term ‘a rising tide lifts all boats’ seems appropriate.”
The Federal Housing Finance Agency Home Price Index released on Tuesday found that home prices rose 6.5% from the fourth quarter of 2022 to the fourth quarter of 2023. The national median home price in December was $382,600, according to the National Association of Realtors. Real estate broker.
All 20 major U.S. housing markets tracked by Case-Shiller reported annual gains for the first time in 2023, with San Diego posting the highest annual gain at 8.8%, followed by Los Angeles and Detroit, both at 8.3%. By region, the Midwest and Northeast experienced the strongest growth, with annual growth rates of 6.7% respectively.
According to the index, home prices in Portland, Ore., rose 0.3% in a year after falling for 11 consecutive months.
While the gains in 2023 are nowhere near the astronomical price growth seen in the pandemic housing market, price growth in 2023 is still above average, especially given the relatively high mortgage prices.
“Looking back on the year, it looks like home price growth in 2023 will exceed the average annual home price growth over the past 35 years,” Luke said. “The trend growth rate at the national level is 4.7%, and the return rate of 5.5% shows solid and stable growth. Although we have not experienced the double-digit growth experienced in the previous two years, considering the rising cost of housing mortgage financing, the high Growth on trend should be welcomed.”
Economists pointed to evidence in the data that conditions had changed at the start of the year in some major markets, such as prices in San Diego and San Francisco, which fell 0.8% and 0.9% year-over-year, although prices there had risen year on year. Year. Bright MLS chief economist Lisa Sturtevant noted that both markets are experiencing growth in new listings.
“These California metros are seeing the fastest growth in new listings, which could put downward pressure on prices,” she said, according to a Bright MLS analysis of Altos Research data.
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