Home Prices Increase for January


The S&P CoreLogic Case-Shiller U.S. National Home Price Index (HPI), reported by S&P Dow Jones Indices, rose at a seasonally adjusted rate of 4.36%. Although this rate has been slowing the previous four months, January saw its first uptick from 2.32% in December 2023.   On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a 6.03% annual gain in January, following a 5.57% increase in December. The year-over-year rate has been increasing since May of 2023, and is at its highest since December of 2022.  Meanwhile, the Home Price Index released by the Federal Housing Finance Agency (FHFA), declined at a seasonally adjusted annual rate of -0.86% in January, following a 1.1% increase in December. On a year-over-year basis, the FHFA Home Price NSA Index rose 6.33% in January, down from 6.63% in the previous month.  In addition to tracking national home price changes, S&P Dow Jones Indices also reported home price indexes across 20 metro areas in January on a seasonally adjusted basis. While seven out of 20 metro areas reported negative home price appreciation, 13 metro areas had positive home price appreciation. Their annual growth rates ranged from -5.53% to 18.80%. Among all 20 metro areas, only four metro areas exceeded the national average of 4.36%. San Diego has the highest rate at 18.80%, followed by Washington, DC at 10.74%, and Charlotte with a 6.46% increase. The six metro areas that experienced price declines were Denver (-5.53%), Phoenix (-4.16%), Cleveland (-1.74%), Seattle (-1.47%), Portland (-1.37%), Detroit (-1.04%), and Miami (-.25%). 

Home Prices Increase for January2024-03-27T11:15:18-05:00

Existing Home Sales Surge to One-Year High in February


Despite the rising mortgage rates witnessed in February, existing home sales continued to improve and climbed to a 12-month high, according to the National Association of Realtors (NAR). However, low resale inventory and strong demand continued to drive up existing home prices, marking the eighth consecutive month of year-over-year median sales price increases. Recent declines in mortgage rates and a continued improvement in inventory are expected to drive more demand in the coming months. Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 9.5% to a seasonally adjusted annual rate of 4.38 million in February (as shown below). However, on a year-over-year basis, sales were 3.3% lower than a year ago. The first-time buyer share fell to 26% in February, down from 28% in January 2023 and from 27% in February 2023. The inventory level rose from 1.01 million in January to 1.07 million units in February and is up 10.3% from a year ago. At the current sales rate, February unsold inventory sits at a 2.9-months supply, down from 3.0-months last month but up from 2.6 months a year ago. This inventory level remains very low compared to balanced market conditions (4.5 to 6 months’ supply) and illustrates the long-run need for more home construction. Homes stayed on the market for an average of 38 days in February, up from 36 days in January and 34 days in February 2023. The February all-cash sales share was 33% of transactions, up from 32% in January and 28% a year ago. All-cash buyers are less affected by changes in interest rates. The February median sales price of all existing homes was $384,500, up 5.7% from last year. This marked the highest recorded price for the month of February. The median condominium/co-op price in February was up 6.7% from a year ago at $344,000. Existing home sales in February were mixed across the four major regions (as shown below). Sales in the Midwest, South, and West increased 8.4%, 9.8%, and 16.4% in February, while sales in the Northeast remained unchanged. On a year-over-year basis, all four regions saw a decline in sales, ranging from -1.2% in the West to -7.7% in the Northeast. The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI fell from 78.1 to 74.3 in January. On a year-over-year basis, pending sales were 8.8% lower than a year ago per the NAR data.

Existing Home Sales Surge to One-Year High in February2024-03-21T13:23:20-05:00

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