US Home Prices Rise for Ninth Consecutive Month

The housing market in the US continues to surge, marking a nine-month streak of climbing home prices, setting new records amid a scarcity of available listings that’s fueling intense buyer competition.

According to S&P CoreLogic Case-Shiller’s seasonally adjusted data, the national price gauge jumped by 0.6% in October from the previous month. This rise was mirrored in the 20 largest cities, signifying a steady and widespread surge in home values across 19 of the 20 cities assessed.

Brian Luke, from S&P Dow Jones Indices, highlighted that this October witnessed the most rapid annual rate of home price growth this year. However, this growth coincided with a period when mortgage rates were soaring toward 8%, making homeowners hesitant to sell, leading to a market drought in available listings and keeping prices persistently high.

Year over year, the escalation in home prices hit 4.8% in October, a surge from the 4% increase noted in September. With Detroit, San Diego, and New York experiencing the most substantial hikes, only Portland, Oregon, saw prices dip among the surveyed cities.

There’s a glimmer of relief on the horizon as mortgage rates dip below 7%, and experts anticipate a further slide as the Federal Reserve relaxes its inflation-curbing strategies. These declining rates could empower prospective buyers and potentially encourage more homeowners to list their properties, which might eventually soften the steep rise in home prices.