Home Prices Mark Biggest 2023 Gain
Home prices continued their upward trajectory, showing a national rise of 4.8% in October compared to the same period last year, marking the most robust annual increase seen throughout 2023, as reported by the S&P CoreLogic Case-Shiller home price index.
Both the 10-city and 20-city composites displayed positive gains, with the 10-city composite jumping by 5.7%, up from the previous month’s 4.8%, and the 20-city composite rising by 4.9%, an increase from September’s 3.9%.
Despite a notable surge in mortgage interest rates during October, reaching over 8%, rates have since decreased steadily. Currently hovering around 6.7%, these more favorable rates coupled with the Federal Reserve’s indicated accommodation may signal potential appreciation for homeowners, noted Brian Luke, head of commodities, real & digital assets at S&P DJI.
Among the top 20 cities, Detroit led the pack with an 8.1% year-over-year increase in home prices in October, followed by San Diego at 7.2% and New York at 7.1%. However, Portland, Oregon, was the exception, showing a 0.6% decline in home prices compared to a year ago.
Selma Hepp, chief economist at CoreLogic, highlighted that the CoreLogic S&P Case-Shiller Index has rebounded significantly, marking a 7% increase since the year’s start and surpassing 2022’s peak values by 1%. Expectations suggest a probable acceleration in annual home price appreciation in the upcoming winter months before potentially slowing down again in the following year due to seasonal patterns.
