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Home prices continued to trend upward in January, according to the latest S&P CoreLogic Case-Shiller Indices.

“National home prices climbed to new all-time highs in January despite widespread affordability challenges,” says Nik Scoolis, manager, housing economics, at Zonda. “The metros that experienced the largest year-over-year gains, San Diego and Los Angeles, are historically undersupplied. Without a significant increase in resale supply across the country, prices will continue to push higher.”

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine census divisions, reported a 6% annual gain in January, up from a 5.6% annual increase in the previous month.

“U.S. home prices continued their drive higher,” says Brian Luke, head of commodities, real & digital assets at S&P Dow Jones Indices. “Our National Composite rose by 6% in January, the fastest annual rate since 2022.”

The 10-City Composite Index increased 7.4% year over year in January, up from 7% last month, while the 20-City Composite increased 6.6% compared with January 2023, up from a 6.2% annual increase in the previous month.

Of the 20 cities analyzed, San Diego recorded the highest year-over-year gain with an 11.2% increase in January, followed by Los Angeles with an increase of 8.6%. Portland, Oregon, was the city with the smallest year-over-year growth at 0.9% in January.

“We’ve commented on how consistent each market performed during 2023, and that continues to be the case. While there is a large disparity between leaders such as San Diego versus laggards such as with Portland, the broad market performance is tightly bunched,” Luke says. “The average annual gains between high and low tiers across cities tracked by the indices is just 1.1%. Low-price-tiered indices have outperformed high-priced indices for 17 months. “

On a month-over-month basis, the 10-City Composite remained unchanged, while the National Index and the 20-City Composite decreased marginally by 0.1% each. After seasonal adjustment, the National Index, 20-City Composite, and 10-City Composite posted month-over-month increases of 0.4%, 0.1%, and 0.2%, respectively.

According to Luke, 17 markets experienced home price drops on a month-over-month basis. Only San Diego (+1.8%), Washington, D.C. (+0.5%), and Los Angeles (+0.1%) posted monthly increases in prices. Minneapolis, conversely, posted a 2.4% decline over the prior three months.

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