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ATLANTA — U.S. home prices fell for the sixth month in a row in December, as rising mortgage rates pushed prospective buyers out of the housing market, according to the latest S&P CoreLogic Case-Shiller U.S. National Home Price Index, released Tuesday.
All cities in the 20-city index — which includes New York, Minneapolis, Phoenix and Los Angeles — reported declines before and after seasonal adjustments, with a median decline of 1.1%.
"The cooling in home prices that began in June 2022 continued through year-end, as December marked the sixth consecutive month of declines for our National Composite Index," says Craig J. Lazzara, managing director at S&P DJI.
Compared to prices from the year before, U.S. home prices nudged higher in December, but the pace of that growth slowed from prior months.
Home prices rose 5.8% in December, a smaller jump than the 7.6% growth seen in November and well below 2021's record-setting 18.9% price gain.
The cities with the strongest price appreciation were all in the Southeast, with Miami, up 15.9% from last year, seeing the strongest prices for the fifth-straight month. It was followed by Tampa, Florida, up 13.9%; Atlanta, up 10.4%, and Charlotte, North Carolina, up 9.9%. The Southeast and South were the strongest regions, and the West continued as the weakest.
In November, prices in San Francisco had fallen on a year-over-year basis and the city's decline worsened in December, with prices down 4.2% year-over-year. In addition, prices in Seattle were also down from last year.
"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," said Lazzara. "Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken."
