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Last updated on January 30th, 2023 at 10:49 pm
Home prices fell 0.5% from September, according to the S&P CoreLogic Case-Shiller index, marking the fourth straight month of seasonally adjusted home price declines in the 20 largest cities.
Markets began to fall earlier this year when the Federal Reserve began raising the benchmark interest rate to ease high inflation, fueled in part by rising housing costs.
The 30-year fixed mortgage rate hit 7.08% in October and hit 7.08% again in November, though it has since declined, according to Freddie Mac data.
With borrowing costs around double what they were at the start of the year and inflation-defying savings available for down payments, homebuyers have held back.
Sellers are also reluctant to list their properties, but homes are still lingering on the market and being dumped at dumped prices as demand dwindles.
Mortgage financing remains a headwind for home prices as the Federal Reserve continues to raise interest rates, S&P Dow Jones Index CEO Craig Lazzara said in a statement on Tuesday.
Prices are likely to continue to decline given the current outlook for the challenging macroeconomic environment.
Although prices are falling each month, they are still higher than a year ago, albeit at a slower pace. The national measure increased by 9.2% year-on-year in October, compared to 10.7% in September.
Among the 20-city index, the largest annual price increases were in Miami, Tampa, Florida, and Charlotte, North Carolina. Prices in Miami rose 21 percent year-over-year.
San Francisco had the smallest increase of 0.6%. From September to October, Las Vegas and Phoenix saw the biggest price declines, down 1.3 percent and 1.2 percent, respectively, according to the seasonally adjusted index. Miami, San Francisco, and Dallas were down 0.9% from the previous month.
Reference Source: Yahoo Finance
