The S&P CoreLogic Case-Shiller Indices for December 2022 have just been released, showing continued decline in home price gains. According to the report, home price gains continued to drop across the U.S. with declining prices reported in the San Francisco and Seattle markets.
The National Home Price NSA Index reported a 5.8 percent gain in December, down from 7.6 percent in the previous month. The 10-City Composite annual increase came in at 4.4 percent, down from 6.3 percent in the previous month. The 20-City Composite posted a 4.6 percent year-over-year gain, down from 6.8 percent in the previous month.
Before seasonal adjustment, the U.S. National Index posted a 0.8 percent decline month-over-month decrease in December.
Miami, Tampa and Atlanta reported the highest year-over-year gains among the 20 cities in December. Miami led the way with a 15.9 percent year-over-year price increase. All top 20 cities, however, reported lower prices in the year ending December 2022 versus the year ending November 2022.
“The cooling in home prices that began in June 2022 continued through year end, as December marked the sixth consecutive month of declines for our National Composite Index,” says Craig J. Lazzara, Managing Director at S&P DJI. “The National Composite declined by 0.8 percent in December, and now stands 4.4 percent below its June peak. For 2022 as a whole, the National Composite rose by 5.8 percent, the 15th best performance in our 35-year history, although obviously well below 2021’s record-setting 18.9 percent gain.
“The prospect of stable, or higher, interest rates means that mortgage financing remains a headwind for home prices, while economic weakness, including the possibility of a recession, may also constrain potential buyers,” Lazzara continued. “Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken.”