Despite a 4.6% gain in year-over-year appreciation, the S&P CoreLogic Case-Shiller 20-city house price index dropped 0.5% in December 2022, its sixth consecutive monthly decline, Realtor.com reports. After posting record increases throughout the pandemic, San Francisco, Seattle, and Portland, Ore., reported the lowest annual gains in December with price changes of -4.2%, -1.8%, and 1.1%, respectively.
By contrast, Miami, Tampa, Fla., and Atlanta reported the highest year-over-year gains among the 20 cities tracked, but all metros are expected to see home prices weaken in the year ahead.
“The prospect of stable, or higher, interest rates means that mortgage financing remains a headwind for home prices, while economic weakness, including the possibility of a recession, may also constrain potential buyers,” Craig J. Lazzara, managing director at S&P DJI, said.
“Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken,” he added.
Advertisement
Related Stories
Housing Markets
States Seek Long-Term Solutions to Reform Property Taxes
Rising home prices typically lead to higher property tax assessments, which has been the case in many Mountain West states, prompting lawmakers to grapple with property tax relief
Housing Markets
Metros Where Housing Prices Have Doubled in Less Than 10 Years
Historical data show it's taken less than 10 years for home prices to double in 68 of the country’s 100 largest cities
Affordability
The Disappearing Act That Is Middle-Income Housing
An expert weighs in on the diminishing supply of middle-income housing, which is particularly acute in California, and what to do about it