Loans

Annual house price growth continues to accelerate



house price A slight decrease in December Some think January is about to cool down, but it’s still a big increase from a year ago.

The S&P CoreLogic Case-Shiller National Home Price Index and data from the Federal Housing Finance Agency both found prices down 0.1% from the previous month.

Anju Vajja, deputy director of the Research and Statistics Department, said in a press release that this is the first monthly decline in the FHFA index since August 2022, but year-on-year price growth remains close to historical averages.

Compared to January 2023, the FHFA index was 6.3%, with all regions across the country reporting price increases, with states in the Midwest and Southwestern states up 3.8% and states in the north-east and east rising 8.7%. The Mid-Atlantic region rose 8.6%; the New England region rose 8.4%; and the Midwest region rose 7.1%.

The Central and Northwest regions were the only regions with a larger increase from the previous quarter, at 1.5%; the largest decrease was in the South Atlantic region, with a decrease of 0.6%.

Meanwhile, S&P Case-Shiller data shows prices nationwide 6% annual increase January’s increase was higher than December’s 5.6% increase.

From a month-on-month perspective, the index has declined for three consecutive cycles.

Its 10-city composite index rose 7.4% on the year, compared with 7.4% in December, while its 20-city composite index increased 6.6%.

“We have commented on the consistency of each market’s performance in 2023 and that remains the case,” Brian Luke, head of commodities, real and digital assets at S&P Dow Jones Indices, said in a press release on Tuesday. No matter what city you’re in, whether you’re in expensive or affordable neighborhoods, you’ve seen healthy growth over the last year. “

But looking at month-to-month changes, house prices have been affected by increased borrowing costs as mortgage rates rise, Luke continued.

Only three markets had quarterly increases: San Diego, up 1.8%; Washington, D.C., up 0.5%; and Los Angeles, up 0.1%.

Selma Hepp, chief economist at CoreLogic, said recent reports of an increase in home sales listings were welcome and suggested the market was normalizing.

“although Mortgage rates rising Real estate market activity continues to freeze in winter, and the thaw is coming. Improvements in For-Sale Inventory Providing more opportunities to potential buyers across the country. ” Hupp said in a statement. “House prices are likely to see seasonal gains as spring approaches, although annual gains will be slower compared to the strong spring of 2023.”

In a follow-up statement, Hupp said prices should rise another 3% to 4% this year.

A slowdown in the pace of house price growth will be welcome as would-be buyers are caught in an affordability crunch.

A report released by Redfin on March 26 found that in February, the typical American household earned nearly $30,000 ($29,448) less than what they needed to afford the median home price.

That’s actually an improvement from October’s deficit of $40,810.

A Redfin analysis of February data found that a buyer would need an annual income of $113,520 to purchase a home with the U.S. median income of $412,778, which is 35% higher than the median household income of $84,072.

“We are slowly emerging from the affordability hole, but we still have a long way to go,” Elijah de la Campa, senior economist at Redfin, said in a press release. Another decline is expected by the end of the year, which should put Buying a home has become more affordable and incentivizing buyers to look no further. “

The income needed to buy a home is up 12% from February 2023, up 39% from the same month in 2022, and up 74% from three years ago.

Realtor.com’s rental report says renting is cheaper than buying in the nation’s 50 largest metro areas due to a lack of affordability.

Mortgage costs for a first-time home in the largest metros average $1,027 per month, or 60.1%, more than rent. Price growth is slowingCoreLogic recently reported.

“The financial balance tips the monthly costs in favor of renting rather than buying, but it doesn’t bring the same benefits of housing wealth growth over time as owning a property, and movers should consider their wealth when making this decision. long-term housing plans and personal circumstances, Realtor.com chief economist Danielle Hale said in a news release.





Source link

Related Articles

Leave a Reply

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

Back to top button