S&P Dow Jones Indices (S&P DJI) announced on Tuesday its
Case-Shiller Home Price Index, which tracks home prices in 20 U.S. metropolitan
areas, recorded a 10.4 percent y-o-y climb in September, following an unrevised 13.1 percent y-o-y surge in August. This marked the weakest annual increase
in house prices since December 2020 (+10.2 percent y-o-y).
Economists had predicted a soar of 10.8 percent y-o-y.
Miami (+24.6 percent y-o-y), Tampa (+23.8 percent y-o-y), and Charlotte (+17.8
percent y-o-y) posted the largest y-o-y gains among the 20 cities in September.
It should be noted, however, that
all 20 cities registered smaller price advances
in the year ending September compared to the year ending August.
Meanwhile, the S&P/Case-Shiller U.S. National Home Price Index,
which measures all nine U.S. census divisions, increased 10.6 percent y-o-y in September,
following a downwardly revised 12.9 percent y-o-y surge (from +13.0 percent
y-o-y) in the previous month.
Commenting on the December data, Craig J. Lazzara, Managing Director at
S&P DJI, said that their September 2022 report reflects short-term declines
and medium-term deceleration in housing prices across the U.S. “As the Federal
Reserve continues to move interest rates higher, mortgage financing continues
to be more expensive and housing becomes less affordable,” he noted. “Given the
continuing prospects for a challenging macroeconomic environment, home prices
may well continue to weaken.”