Connect with us

Business

Home Prices Tank the Most Year-Over-Year in More Than 10 Years

Published

on

Home Prices Tank the Most Year-Over-Year in More Thank 10 Years

In May, home prices in the United States fell from a year earlier, marking the second month in a row that prices fell year over year.

The S&P CoreLogic Case-Schiller National Home Price Index, which represents a three-month moving average of home prices across the country, decreased by 0.5 percent last year, the greatest yearly drop since 2012. In April, the index was 0.1 percent lower than the previous month.

Despite a decline in yearly numbers, the indicator was up 0.7 percent from the previous month. This was the fourth consecutive monthly gain.

Recent price gains indicate that the housing market has bottomed and is now rebounding from the shock of the Federal Reserve's quickest hike cycle in decades. This year, mortgage rates have fluctuated between six and seven percent.

An earlier-than-expected rebound in the housing market presents an unanticipated challenge to the Fed's anti-inflationary program. Housing is normally one of the most responsive sectors to Fed policy, so rising prices might indicate that the economy has already absorbed the Fed's previous rises and inflationary pressures are about to resurface.

The Case-Shiller 10-city index, which gauges house values in the nation's major metropolitan areas, declined 0.9 percent year on year, down from the 1.1 percent drop in April. The index is down 1.6 percent from the latest peak of property prices in June of last year. Yet, the 10-city index rose 1.1 percent on a monthly basis.

The 20-city index was down 1.7 percent year on year and up one percent month on month. Prices are down 2.3 percent from their high in June 2022.

“The rally in U.S. home prices continued in May 2023,” said Craig J. Lazzara, Managing Director at S&P DJI. “The ongoing recovery in home prices is broadly based. Before seasonal adjustment, prices rose in all 20 cities in May (as they had also done in March and April). Seasonally adjusted data showed rising prices in 19 cities in May, repeating April’s performance.”

The Case-Shiller indexes are widely recognized as the gold standard for measuring house prices. These are based on repeat sales statistics, which are seen to be more accurate than the National Association of Realtors' monthly median price data. The mix of properties sold in a month can have an impact on the median figure. For example, even if home prices have not moved or even grown, the median might decline if a higher volume of transactions occurs in lower-priced properties. According to the NAR, the median price of existing houses sold in June declined by 0.9 percent.

Up Next:

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Continue Reading

Copyright © 2023 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.

Is THE newsletter for…

INVESTORS TRADERS OWNERS

Stay up-to-date with the latest kick-ass interviews, podcasts, and more as we cover a wide range of topics, in the world of finance and technology. Don't miss out on our exclusive content featuring expert opinions and market insights delivered to your inbox 100% FREE!

SUBSCRIBE TODAY AND GET A FREE GIFT

Get ready to stay up-to-date with the latest business and market news from around the world!

The Capitalist is here to provide you with insightful data, analysis, and even videos to keep you informed.