US Home Prices Rose For 11th Straight Month In December, But…

US Home Prices Rose For 11th Straight Month In December, But…

Home prices in America’s 20 largest cities rose for the 11th straight month in December (the latest data released by S&P Global Case-Shiller today), up 0.21% MoM (in line with the 0.20% MoM expected and 0.24% prior).

Source: Bloomberg

That pushed the YoY price up to +6.13% (in line with the +6.03% exp).

“While we are not experiencing the double-digit gains seen in the previous two years, above-trend growth should be well received considering the rising costs of financing home mortgages,” according to Brian D. Luke, Head of Commodities, Real & Digital Assets at S&P Dow Jones Indices.

Miami, Las Vegas, and Los Angeles saw MoM gains in their city’s prices, while the rest of the 17 majors saw declines MoM, but on a YoY basis, there was no city with lower prices for the first time since Nov 2022. While San Diego and Los Angeles are leading the price gains on a YoY basis, we note that Detroit (yes, Detroit) is seeing the 3rd fastest home price growth (+8.32% YoY)…

But, judging by the resumption of the rise of mortgage rates since the Case-Shiller data was created, we would expect prices to also resume their decline in the short-term…

Source: Bloomberg

Are prices set to shrink again (as the lag on Case-Shiller data and human’s response to rates) before re-accelerating later this year?

Tyler Durden
Tue, 02/27/2024 – 09:12

via ZeroHedge News Tyler Durden

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