A “sale pending” sign is posted in front of a house on the market on November 30, 2023 in San Anselmo, California.
Justin Sullivan | Getty Images News | Getty Images
Home prices rose 4.8% nationally in October compared with October 2022, in response to the S&P CoreLogic Case-Shiller home price index. That is a jump from the 4% annual increase in September and marks the strongest annual gain seen in 2023.
The ten-city composite rose 5.7%, up from a 4.8% increase within the previous month. The 20-city composite rose 4.9%, up from a 3.9% advance in September.
The strength in home prices got here despite a pointy rise in mortgage rates of interest in October. The typical rate on the 30-year fixed loan crossed 8% on Oct. 19, in response to Mortgage News Every day. That was the very best level in greater than 20 years. Rates, nevertheless, dropped steadily through November and more sharply in December, with the 30-year fixed rate now hovering around 6.7%.
“Home prices leaned into the very best mortgage rates recorded on this market cycle and continued to push higher,” said Brian Luke, head of commodities, real & digital assets at S&P DJI, in a release. “With mortgage rates easing and the Federal Reserve guiding toward a rather more accommodative stance, homeowners could also be poised to see more appreciation.”
Among the many top 20 cities, Detroit reported the most important year-over-year gain in home prices at 8.1% in October. San Diego followed with a 7.2% increase after which Recent York with a 7.1% gain. Home prices in Portland, Oregon, fell 0.6%, the one city within the index showing lower prices in October versus a yr ago.
“Home price gains within the CoreLogic S&P Case-Shiller Index have increased by 7% for the reason that starting of the yr and are 1% higher than at the height in 2022, recovering all losses recorded within the second half of 2022,” said Selma Hepp, chief economist at CoreLogic. “Given the stronger seasonal gains seen in early 2023, annual home price appreciation should speed up this winter before slowing again next yr.”
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