Home prices rose month-over-month and YOY after seasonal adjustment in December, sending the cost of homebuying soaring.
Prices were up 5.5% YOY, an increase from November’s 5% gain, according to the S&P CoreLogic Case-Shiller National Home Price NSA Index.
San Diego reported the highest annual gains at 8.8%, followed by Los Angeles and Detroit, each seeing an 8.3% increase. Portland showed a 0.3% increase this month, the smallest YOY growth.
This data places U.S. home prices at a new all-time high, the seventh straight record high of 2023.
“2023 U.S. housing gains haven’t followed such a synchronous pattern since the COVID housing boom. The term ‘a rising tide lifts all boats’ seems appropriate given broad-based performance in the U.S. housing sector,” said Brian D. Luke, Head of Commodities, Real & Digital Assets at S&P Dow Jones Indices.
He noted that home price gains throughout 2023 exceeded the average over the past 35 years.
“With trend growth at the national level of 4.7%, a 5.5% return demonstrates solid, steady growth. While we are not experiencing the double-digit gains seen in the previous two years, above-trend growth should be well received considering the rising costs of financing home mortgages,” he added.
The latest Federal Housing Finance Agency House Price Index revealed similar trends, with prices up 0.1% from November.
“U.S. house prices increased modestly over the course of 2023,” said Dr. Anju Vajja, Acting Deputy Director for FHFA’s Division of Research and Statistics. “However, the market showed signs of softening as house price appreciation was lower in the fourth quarter of the year than in the previous quarter.”
House prices were up 1.5% from Q3 2023 to Q4, and 6.5% from Q4 2022.
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