S&P Dow Jones Indices (S&P DJI) reported on Tuesday its
Case-Shiller Home Price Index, which tracks home prices in 20 U.S. metropolitan
areas, logged a 4.6 percent y-o-y jump in December 2022, following an unrevised 6.8 percent y-o-y climb in November. That was the weakest annual advance
in house prices since July 2020 (+4.2 percent y-o-y).
Economists had forecast a surge of 5.8 percent y-o-y.
Miami (+15.9 percent y-o-y), Tampa (+13.9 percent y-o-y), and Atlanta (+10.4
percent y-o-y) demonstrated the largest y-o-y gains among the 20 cities in December. However, all
20 cities posted weaker price advances in
the year ending December compared to the year ending November.
Meanwhile, the S&P/Case-Shiller U.S. National Home Price Index,
which measures all nine U.S. census divisions, soared 5.8 percent y-o-y in December,
following a 7.6 percent y-o-y surge
in the previous
month.
On a m-o-m basis, the U.S. National Index dropped 0.8 percent and the
20-City Composites decreased 0.9 percent.
Commenting on the latest data, Craig J. Lazzara, Managing Director at
S&P DJI, noted that 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. “Given these prospects for a challenging macroeconomic
environment, home prices may well continue to weaken,” he added.