New data released Tuesday showed that home prices accelerated at their fastest annual rate of the year in October.
The S&P CoreLogic Case-Shiller home price index – which includes data from all nine U.S. Census divisions – recorded a 4.8% annual increase in October 2023. The 10-city and 20-city composites also reported year-over-year increases of 5.7% and 4.9%, respectively.
“U.S. home prices accelerated at their fastest annual rate of the year in October,” said Brian D. Luke, head of commodities, real and digital assets at S&P Dow Jones Indices, in a statement. “Our National Composite rose by 0.2% in October, marking nine consecutive monthly gains and the strongest national growth rate since 2022.”
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Three cities led the way in terms of the pace of growth in home prices in the latest report.
“Detroit kept pace as the fastest growing market for the second month in a row, registering an 8.1% annual gain,” Luke said. He noted that San Diego remained second with a 7.2% annual gain, followed by New York with a 7.1% gain.
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Luke noted that the U.S. is “experiencing [broad-based] home price appreciation across the country” with steady gains observed in 19 of 20 cities. “This month’s report reflects [trend line] growth compared to historical returns and little disparity among cities and regions.”
“Each of our 10-city, 20-city and National Index, remain at all-time highs, with 8 of 20 cities registering all-time highs (Miami, Atlanta, Chicago, Boston, Detroit, Charlotte, New York and Cleveland),” he added. “While Portland remains slightly down compared to last year’s gains, Phoenix and Las Vegas have flipped to year over year gains.”
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As far as differences between various regions, the report found that the Midwest and Northeast were the fastest-growing markets as the Southwest and West regions lagged behind other regions for more than a year.
“A solid, if unspectacular report, this month’s index reflects a rising tide across nearly all markets,” Luke stated, adding that this comes during a period of high mortgage rates due to the Federal Reserve’s efforts to tamp down inflation.
“Home prices leaned into the highest mortgage rates recorded in this market cycle and continued to push higher. With mortgage rates easing and the Federal Reserve guiding toward a slightly more accommodative stance, homeowners may be poised to see more appreciation,” he said.
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