In these times, double down — on your skills, on your knowledge, on you. Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. Get your ticket now for the best price.
Home prices in the United States continued their gradual decline in November 2022 as elevated mortgage interest rates kept demand tamped down.
The CoreLogic-Case Schiller index and the Federal Housing Finance Authority house price index both posted slight price declines in November, according to new data released Tuesday.
The Case-Schiller index posted a 7.7 percent annual gain in home prices — down from a 9.2 percent gain in October and a 0.6 percent monthly decrease, while the FHFA index showed a 0.1 percent annual decline in prices between October and November, and an 8.2 percent annual increase between November 2021 and November 2022, down from a 9.8 percent increase posted the previous month.
The Case-Schiller index has now declined for five consecutive months.
The data from late 2022 represents a period in which American homebuyers reacted to increases in mortgage rates — which rose above 7 percent in November — and generally pulled back from the market ahead of the holidays.
“Today’s S&P CoreLogic Case-Shiller Index showcases the slowdown in housing transactions toward the tail end of 2022, as homebuyers worn tired by the relentless surge in mortgage rates took a bigger step back from the market,” Realtor.com Senior Economist George Ratiu said in a statement. “Sales of existing homes in November declined, leaving more sellers to ponder their pricing strategies, especially as the start of the holiday season redirected people’s focus away from real estate.”
The rise of remote work combined with generationally low interest rates fed a housing boom in 2020, 2021 and the first half 0f 2022 that screeched to a halt as the federal reserve began increasing interest rates in mid-2022 to tamp down on inflation.
The rise in rates and slowdown of buyer activity has stoked fears of a housing recession, but some experts have predicted that the housing market already bottomed out in 2022 and is setting a course for normalization.
“Despite the slowdown in price appreciation, talk about a major market correction is just hyperbole,” Bright MLS chief economist Dr. Lisa Sturtevant said in a statement.
“In fact, we may have already seen the bottom of the housing market,” Sturtevant added. “Mortgage rates fell throughout January, prompting more buyers to view properties and make offers. Inflation has begun to ease, boosting consumer confidence. Many agents and brokers are expecting a robust spring housing market, and the overall mood in the market feels much more optimistic than even a month ago.”
