Growth in home prices dropped by 0.2% in November after enjoying a nine-month streak. Twelve of 20 major metro markets saw price decreases from the prior month, according to S&P CoreLogic’s Case-Shiller U.S. National Home Price NSA Index.
Although month-over-month figures dropped, year-over-year prices are still increasing, the index notes. Six cities, including New York, Miami and Atlanta, saw all-time highs in November. “November’s year-over-year gain saw the largest growth in U.S. home prices in 2023, with our national composite rising 5.1 percent and the 10-city index rising 6.2 percent,” said Brian Luke, head of commodities, real & digital assets at S&P DJI.
Ten consecutive rate hikes from the Federal Reserve over the past two years pushed up mortgage rates, creating a problem of “golden handcuffs,” said Mark Hamrick, Bankrate’s senior economic analyst. They are “limiting the desire and some of the ability of people to move out of the homes they currently own,” which “further pressures housing inventory, adding insult to supply injury.”
But rates are now going down; as of Jan. 24, the average 30-year mortgage rate was 6.93%. Meanwhile, homes are staying on the market longer, on average, cooling competition.
