The S&P CoreLogic Case-Shiller 20-city home price index in the U.S. climbed 4.7% year-over-year in January, accelerating from December’s 4.5% gain but slightly below market expectations of a 4.8% increase.
US home prices rise at faster pace
This marked the fastest pace of home price growth since last August. However, analysts anticipate a slowdown in the coming months as high mortgage rates and affordability challenges continue to weigh on buyer demand and overall market activity.
Among the 20 tracked cities, New York recorded the largest annual price increase, rising 7.7% in January, followed closely by Chicago and Boston, which posted gains of 7.5% and 6.6%, respectively. In contrast, Tampa was the only city to register a decline, with home prices falling 1.5%. On a monthly basis, the 20-city index edged up 0.1% in January, reversing a five-month streak of declines.
Prices rise as forecast: FHFA
Separately, the Federal Housing Finance Agency (FHFA) reported that the average price of single-family homes with mortgages backed by Fannie Mae and Freddie Mac rose 0.2% month-over-month in January, following an upwardly revised 0.5% increase in December and aligning with market forecasts. Year-over-year, home prices grew 4.8%, consistent with December’s revised figure.
Regionally, seasonally adjusted monthly price changes ranged from a 0.8% decline in the South Atlantic division to a 1.0% gain in the West North Central division. Over the past 12 months, all nine census divisions recorded price increases, with the Middle Atlantic region leading at 8.2%, while the West South Central division saw the smallest gain at 2.4%.
