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Home price rises slowed slightly in April, says S&P Case-Shiller

People enter a house for sale in Floral Park, Nassau County, New York.

Wang Ying | Xinhua News Agency | Getty Images

Rising house prices slowed slightly in April, but this is the first potential sign of a cooling in prices.

Prices rose 20.4% nationally in April compared to the same month last year, according to the S&P CoreLogic Case-Shiller Index. In March, house prices rose by 20.6%. The last small deceleration was in November last year.

The compound annual growth of 10 cities was 19.7%, up from 19.5% in March. The 20 city composites had an annual gain of 21.2%, up from 21.1% in the previous month.

As a result of the change in the last five months, when most 20 cities saw month-on-month price gains, prices seen by only nine cities rose faster in April than in March. Southern cities continued to have the strongest monthly gains, including Atlanta, Charlotte, Dallas, Miami and Tampa.

“April 2022 showed initial signs of slowing (though inconsistent) growth in U.S. home price growth,” S&P DJI Managing Director Craig Lazzara wrote in a note. “We continue to see a very broad force in the housing market as all 20 cities have seen double-digit price increases over the past 12 months in April. The April price rise was in the top five of each city’s historical experience, and above. Let it be for 19 of them.”

Tampa, Miami and Phoenix continued to lead the package with the strongest price gains. Home prices in Tampa rose year-on-year with a surprising year-on-year rise of 35.8%, with Miami rising by 33.3% and Phoenix by 31.3%. Nine of the 20 cities had higher price increases in the year ended April 2022 than in the year ended March 2022.

The cities with the lowest profits, still in double figures, were Minneapolis, Washington, DC and Chicago.

It is important to note that not only are these price gains for April, the index is a three-month moving average. The average rate on a 30-year fixed mortgage has just exceeded the 5% limit in April, after rising by about 3% in January. It exceeded 6% in June.

“We pointed out last month that mortgage financing has become more expensive as the Federal Reserve raises interest rates, a process that had just begun when data were collected in April.

The housing market is already cooling, with slower sales and a drop in prices among some sellers. The supply of homes for sale has also grown steadily as more listings are marketed and existing homes sit longer. Last week’s active inventory was 21% higher than the same week a year ago, according to Realtor.com.

“For buyers and sellers, the way forward will require greater price flexibility, improved trading skills and the recognition that current market conditions are different than they were six months ago,” said George Ratiu, senior economist at Realtor.com.

Home price rises slowed slightly in April, says S&P Case-Shiller

Source link Home price rises slowed slightly in April, says S&P Case-Shiller

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