Data from the S&P CoreLogic Case-Shiller Indices reveals housing prices continued their recovery in March, with all 20 major metro markets reporting month-over-month increases.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. Census divisions, reported a 0.7% annual gain in March, down from 2.1% in the previous month.
“The modest increases in home prices we saw a month ago accelerated in March,” says Craig J. Lazzara, managing director at S&P Dow Jones Indices. “Two months of increasing prices do not make a definitive recovery, but March’s results suggest that the decline in home prices that began in June 2022 may have come to an end. That said, the challenges posed by current mortgage rates and the continuing possibility of economic weakness are likely to remain a headwind for housing prices for at least the next several months.”
The 10-City Composite showed a decrease of -0.8%, down from a 0.5% increase in the previous month, while the 20-City Composite posted a -1.1% year-over-year loss, down from a 0.4% gain in the previous month.
Out of the 20 cities included in the report, Miami; Tampa, Florida; and Charlotte, North Carolina, reported the highest year-over-year gains among the 20 cities in March. Miami led the way once again with a 7.7% year-over-year price increase, followed by Tampa in second with a 4.8% increase and Charlotte replacing Atlanta in third with a 4.7% increase.
Before seasonal adjustment, the U.S. National Index posted a 1.3% month-over-month increase in March, while the 10-City and 20-City Composites posted increases of 1.6% and 1.5%, respectively. After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 0.4%, while the 10-City Composite gained 0.6% and the 20-City Composite posted an increase of 0.5%.
“Home prices have been on a wild ride over the past six months,” says Ali Wolf, chief economist at Zonda. “We saw builders adjust prices quicker than existing homeowners last year, but eventually prices were down in both categories. Demand picked back up in 2023 in normal seasonal fashion, though, without an accompanying uptick in supply. This has resulted in a change in course again, with home prices back on the upswing.”