Housing Prices On The Rise: Case-Shiller Index Indicates Ongoing Recovery

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Housing Prices On The Rise: Case-Shiller Index Indicates Ongoing Recovery

Jun 9, 2023 | News | 0 comments

The most recent S&P CoreLogic Case-Shiller Indices for March 2023, published by the S&P Dow Jones Indices (S&P DJI), indicate a sustained rebound in housing prices. This widely regarded benchmark for U.S. home prices reveals that the top 20 metropolitan areas experienced month-to-month price gains.

In its 27th year of publication, the latest report revealed that in March 2023, the National Index showed a 1.3% rise in home prices compared to the previous month. Similarly, the top-10 and top-20 city composites experienced increases of 1.6% and 1.5%, respectively.

Upon the seasonal adjustment of the data, the National Index displayed a 0.4% month-over-month growth, while the 10-city composite saw a gain of 0.6%, and the 20-city composite recorded an increase of 0.5%.

Craig J. Lazzara, the Managing Director at S&P DJI, remarks on the notable changes in home prices during March 2023. Lazzara states that the modest home price increases a month ago gained momentum in March 2023. He highlights that the National Composite experienced a 1.3% rise in March, bringing it to a level just 3.6% below its peak in June 2022. Furthermore, the 10-City and 20-City Composites exhibited comparable progress, showcasing increases of 1.6% and 1.5% correspondingly. Looking at the trailing 12-month period, the National Composite surpassed its March 2022 level by a mere 0.7%, while the 10- and 20-City Composites exhibited slight declines on a year-over-year basis.

Lazzara further notes that the observed acceleration was evident even at a more detailed level. Prior to seasonal adjustment, all 20 cities experienced price increases in March, compared to 12 cities in February, and all 20 cities exhibited accelerated price gains between February and March. After seasonal adjustment, 15 cities recorded rising prices in March, up from 11 cities in February, and 14 cities demonstrated acceleration.

Although acknowledging the positive trend, Lazzara remains cautious, stating that two consecutive months of price increases alone do not definitively indicate a full recovery. However, March’s results suggest that the decline in home prices, which began in June 2022, may have reached its conclusion. He concludes by mentioning the challenges posed by current mortgage rates and the potential for economic weaknesses, indicating that these factors are likely to continue hindering housing prices in the coming months.