U.S. Home Prices Exhibit Growth in October, Led by Detroit and San Diego

The S&P CoreLogic Case-Shiller Indices, a key indicator of U.S. home prices, has revealed an upward trend for the month of October 2023. According to data released by S&P Dow Jones Indices, out of 20 major metropolitan markets, 11 experienced price increases compared to the previous month. This ongoing growth is supported by historical data spanning over 27 years.

Annual Home Price Changes

During October, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported an annual increase of 4.8%, a notable rise from the 4% change observed in September. Moreover, the 10-City Composite registered a 5.7% year-over-year increase, with the 20-City Composite marking a 4.9% rise. Leading the growth among cities, Detroit saw a significant 8.1% annual surge in home prices, followed by San Diego at 7.2%. Conversely, Portland remained the only city with declining prices, showing a slight 0.6% drop from the previous year.

Month-over-Month Price Dynamics

In the month-over-month analysis, before seasonal adjustment, both the U.S. National Index and the 10-City Composite indicated 0.2% increases for October, whereas the 20-City Composite reported a modest 0.1% increment. Post-seasonal adjustment, all three composites demonstrated a synchronous 0.6% uptick in prices.

An analysis by Brian D. Luke, Head of Commodities, Real & Digital assets at S&P DJI, highlights that U.S. home prices have not only extended their growth streak to nine months but also exhibited the strongest national growth rate since 2022.

Regional Insights

Assessing the regional performance, the Midwest and Northeast have emerged as the fastest-growing markets. Despite some cities reaching all-time high home prices, such as Miami and New York, the overall market displayed a steady appreciation with little disparity amongst different locations. It's worth noting, however, that Phoenix and Las Vegas turned around their previous trends to report year-over-year gains.

In light of the recent data, which comes amidst the highest mortgage rates seen in this market cycle, home prices continued their ascent. With easing mortgage rates and the Federal Reserve's slight tilt towards more accommodation, homeowners may anticipate continued appreciation in their property values.

home, prices, growth