U.S. Home Prices Increase for Third Straight Month

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U.S. home prices rose in April due to a limited supply of for-sale listings. However, on an annual basis, home prices posted a decline for the first time in 11 years, as higher mortgage rates made home purchases more expensive for buyers. Home prices were up 1.3% from March to April, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. While that was the third month in a row that prices have increased, the annual rate of change has weakened over the past year. Home prices were down 0.2% year-over-year in April 2023, a weaker result than the 0.7% annual increase in March 2023 and the first annual decline since April 2012. Looking at more granular results, the S&P CoreLogic Case-Shiller 20-City Composite Index, which tracks prices in the 20 largest metros, posted a 1.3% month-over-month gain, while the annual change went from a decline of 1.1% in March to a decline of 1.7% in April. In April, all 20 cities in the index reported month-over-month price increases. The largest monthly increase was in Boston (2.9%), followed by Cleveland, Detroit and Seattle (all three at 2.3%). On an annual basis, 10 of the 20 metro areas recorded lower prices, with the deepest pull backs in West region markets, led by Seattle (-12.4%) and San Francisco (-11.1%). The nation’s biggest annual hikes were primarily in South region markets, led by Miami (5.2%), Chicago (4.1%), Atlanta (3.5%) and Charlotte (3.4%).