Home Prices Post YOY Gains In 96% Of Largest Metros
The CoreLogic S&P Case-Shiller Index, now with a full year of data on record as of December 2023, has indictated the resiliency of home prices against rising borrowing costs and historic housing supply shortages. Home prices increased by 2.4% in 2023 compared to 2022, which gains averaged 14.8%. And between 2014 and 2019, home price growth averaged 5.2%.
According to CoreLogic, In December, the CoreLogic S&P Case-Shiller Index rose by 5.5% year over year, the sixth month of annual increases following two months of annual declines. With the rebound in appreciation in 2023, home prices are now up by 0.6% compared with the June 2022 peak and up by 6.1% from the January 2023 bottom.
While prospects for 2024 housing market activity looked promising coming into the year, elevated mortgage rates, which recently took another step higher, are posing a challenge for both buyers and sellers. With early data for the supply of homes for sale and contracts signed in January and February, the expected 2024 rebound has yet to be seen, particularly as the spring homebuying season nears. But despite constrained sales activity, home prices are expected to moderate as the imbalance between buyers and sellers continues. The latest CoreLogic Home Price Index (HPI) forecast estimates that home prices will increase by another 3% on average in 2024.
