Slowing US home price appreciation continued in October – Silicon Valley
WASHINGTON – The US home appreciation rate continued to moderate in the second half of the year with weaker double-digit gains.
The S&P CoreLogic Case-Shiller Home Price Index in 20 cities, released on Tuesday, was up 18.4% in October from a year earlier. The annualized gain moderated for three consecutive months, down from 20% in July, or 92% of the rate of appreciation three months earlier.
Only six of the 20 cities posted increasing gains:
Atlanta’s # 1: Up 21.3% on the year ended in October against an 18.6% gain in July, or 115% of increases from three months earlier.
Tampa n Â° 2: 28.1% for October against 24.4% or 114.9%
# 3 Miami: 25.7% for October against 22.4% or 114.7%
# 4 Las Vegas: 25.5% for October against 22.4% or 113.4%
Charlotte n Â° 5: 22.5% for October vs 20.9% or 107.5%
# 6 Dallas: 24.6% for October vs 23.7% or 103.9%
These 14 cities saw a cool appreciationâ¦
Phoenix n Â° 7: 32.3% for October against 32.4% three months earlier, or 99.8% of the appreciation rate for July.
# 8 Los Angeles: 18.5% for October against 19% or 97.3%.
# 9 Denver: 20.3% for October against 21.3% or 95.4%.
No. 10 Portland: 17.7% for October against 19.5% or 91%.
N Â° 11 Detroit: 14.7% for October against 16.1% or 91%.
Seattle # 12: 22.8% for October against 25.5% or 89.2%.
# 13 Chicago: 11.5% for October against 13% or 88.5%.
# 14 San Diego: 24.2% for October against 27.8% or 87.2%.
# 15 San Francisco: 18.5% for October against 21.9% or 84.2%.
# 16 Cleveland: 13.3% for October against 16.5% or 81%.
Boston # 17: 15.1% for October against 18.7% or 81%.
# 18 Minneapolis: 11.5% for October against 14.3% or 80.4%.
Washington # 19: 12% for October against 15% or 79.7%.
# 20 New York: 14.6% for October against 18.5% or 78.7%.
The housing market has been strong thanks to the lowest mortgage rates, a limited supply of housing in the market and pent-up demand from consumers stranded by the pandemic last year. Many Americans, tired of being locked in their homes during the pandemic, are looking to move from apartments to houses or larger homes.
âHome price growth will slow down further over the coming year, but will continue to increase,â said Danielle Hale, chief economist at Realtor.com. âAs housing costs take up a larger share of homebuyers’ paycheques, buyers will get creative. Many will take advantage of the continued flexibility of the workplace to relocate to the suburbs where, despite increases in house prices, many may still find a price per square foot lower than in neighboring towns. “
It’s still unclear whether this change is permanent or an aberration, said Craig Lazzara, managing director of S&P Dow Jones Indices.
âWe previously suggested that the strength of the US real estate market was due in part to a change in location preferences as households respond to the COVID pandemic,â Lazzara said. “More data will be needed to understand whether this increase in demand represents an acceleration in purchasing that would have occurred in the next few years, or reflects a more permanent secular change.”
Last week, mortgage rates fell – to 3.05% for the 30-year benchmark, fixed-rate mortgage and to 2.66% for the 15-year fixed-rate mortgage. Still low rates indicate that credit markets seem more concerned with the omicron variant that depresses economic growth than with the highest inflation rates in nearly 40 years.
The National Association of Realtors reported last week that sales of previously occupied homes increased for the third consecutive month in November at a seasonally adjusted annual rate of 6.46 million.
The Associated Press and Jonathan Lansner of the Southern California News Group contributed to this report.