Data released on Tuesday showed that the S&P Core Logic Case Shiller National Home Price Index increased at an annual rate of 6% in January, the fastest annual growth rate in more than a year.
Attend the event July 30-August 1 at Inman Connect in Las Vegas! Seize the moment and take control of the next era of real estate. Through immersive experiences, innovative formats and an unparalleled lineup of speakers, this gathering becomes more than just a conference, it becomes a collaborative force shaping the future of our industry. Grab your tickets now!
At the beginning of the new year, U.S. housing price growth continues to maintain momentum, with growth in January 2024 reaching the fastest annual rate since 2022 S&P CoreLogic Case-Schiller Home Price Index Published on Tuesday.
In January 2024, the national housing price index had an annual growth rate of 6%, a seasonally adjusted increase of 0.4% from the previous quarter. In December, the index increased 5.6% year-on-year.
“U.S. home prices continue to move higher,” Brian D. Luke, head of commodities, real and digital assets at S&P Dow Jones Indices, said in a statement.
“Our national composite index rose 6% in January, the fastest annual growth rate since 2022. Our 10-city and 20-city composite indexes rose even more, rising 7.4% and 6.6% respectively. . Annual home prices rose for the second consecutive month in all cities, led by an 11.2% surge in San Diego. On a seasonally adjusted basis, home prices continued to surpass the all-time high set last year.”
As of December, the 10-city and 20-city composite indices had achieved annual gains for six consecutive months, rising 7% and 6.1% respectively.The 10-city composite index tracks price growth in Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco and Washington, D.C.
San Diego had the most impressive annual price growth at 11.2%, but Charlotte and Chicago also had impressive annual price growth at 8.1% and 8.0%, respectively.
“We have commented on the consistency of each market’s performance in 2023 and that remains the case,” Luke added.
“While there is a wide gap between leaders like San Diego and laggards like Portland (which is growing at just 0.9% annually), overall market performance is closely aligned. The same is true for high- and low-tier cities. High-tier cities tracked by the index and lower-tier cities average annual growth of just 1.1%. The low-price tiered index has outperformed the high-price index for 17 consecutive months. Homeowners likely saw healthy growth last year, no matter which city you are in, whether in Expensive or cheap neighborhoods. No matter how you slice it, the index performs very similarly to the broader market.”
Luke noted that some markets are facing more challenges than others in terms of quarter-on-quarter home price growth as mortgage rates continue to remain high. Seventeen markets posted declines month over month, but Southern California and Washington, D.C. were two areas with positive growth.
Interest rates on 30-year fixed-rate conforming mortgages averaged 6.97% during the week of March 15, up from 6.84% the week before. According to the MBA’s weekly application survey released last week, seasonally adjusted requests for home loans also fell 14% from the same period last year and fell 1% week-on-week.
Email Lillian Dixon
