Case-Shiller US index, year-over-year change. (Source: St.Louis Fed)
Home-price gains in the US slowed in April as would-be buyers facing higher mortgage rates pulled back from the market.
A national measure of prices rose 6.3% from a year earlier, less than the 6.5% gain in March, according to data from S&P CoreLogic Case-Shiller.
Run-ups in both prices and mortgage rates over the past couple of years have squeezed buyers and kept listings tight as owners reluctant to part with their pandemic-era cheap loans stay put. Borrowing costs popped back above 7% in April, pushing more house hunters to the sidelines and easing bidding wars for the ones who remained in the market.
Despite the deceleration, the national measure of prices is at a record, according to S&P CoreLogic Case-Shiller data going back more than two decades.
“Heading into summer, the market is at an all-time high, once again testing its resilience against the historically more active time of the year,” Brian Luke, head of commodities, real and digital assets at S&P Dow Jones Indices, said in a statement Tuesday.
Prospects may be getting rosier for buyers. The share of sellers dropping their list price was at its highest level since November 2022 and growth in asking prices has slowed, according to data from Redfin Corp. for the four weeks through June 16. Homes that need work are lingering on the market, the brokerage said, potentially offering deal opportunities for shoppers willing to spend money on repairs.
Price gains in a Case-Shiller measure of 20 cities also pulled back slightly, rising 7.2% in April. That’s below the 7.5% increase in March. San Diego had the biggest gain in prices from a year earlier at 10.3%, while Portland, Oregon, had the smallest annual growth with a 1.7% gain. Los Angeles-Orange County was up 8.6%, fourth-largest.
Other metropolitan areas:
- New York: 9.4%
- Chicago: 8.7%
- Cleveland: 8.5%
- Las Vegas: 8.3%
- Miami: 8.2%
- Boston: 7.9%
- Seattle: 7.5%
- Charlotte: 7.3%
- Detroit: 7.2%
- Washington, D.C.: 6.4%
- Atlanta: 5.9%
- Phoenix: 4.8%
- San Francisco: 4.7%
- Tampa: 3.6%
- Dallas: 3.4%
- Minneapolis: 2.9%
- Denver: 2.0%
“Nineteen of the 20 Case Shiller metro areas saw annual growth rate slow, except Las Vegas – where home price growth continued to heat up manifesting continued in-migrating demand from buyers from more-expensive Western markets,” said CoreLogic chief economist Selma Hepp. “Higher priced segments in markets with strong wages and elevated levels of accumulated home equity, such as Boston, San Francisco and Seattle outperformed the other markets, as homebuyers in those markets had more leverage when making home purchases, but also continued lack of supply meant demand still outpaces supply putting pressure on prices.”
