A “For Sale Pending” sign is placed in front of a home for sale in San Anselmo, California on November 30, 2023. Pending home sales fell 1.5 percent in October to a 20-year low, according to a report by the National Association of Realtors. (Photo by Justin Sullivan/Getty Images)
Justin Sullivan | Getty Images News | Good pictures
Nationally, home prices rose 4.8% in October compared to October 2022, according to the S&P CoreLogic Case-Shiller Home Price Index. This is an improvement from the 4% annual increase in September and represents the strongest annual gain seen in 2023.
The 10-city composite rose 5.7% from a 4.8% increase in the previous month. The 20-city composite rose 4.9% from a 3.9% advance in September.
The strength in home prices came despite a sharp rise in mortgage interest rates in October. According to Mortgage News Daily, the average rate on a 30-year fixed loan topped 8% on Oct. 19. This is the highest level in more than two decades. However, rates fell steadily through November before falling more sharply in December, with the 30-year fixed rate now at 6.7%.
“Home prices have continued to rise, leaning toward the highest mortgage rates on record this market cycle,” Brian Luke, S&P DJI's head of commodities, real & digital assets, said in a release. “With mortgage rates easing and the Federal Reserve guiding toward a slightly more accommodative stance, homeowners may be poised to see more appreciation.”
Among the top 20 cities, Detroit posted the largest year-over-year price gain in October, at 8.1%. San Diego followed with a 7.2% rise and then New York with a 7.1% gain. Home prices fell 0.6% in Portland, Oregon, the only city to show lower prices in October than a year ago.
“Home price gains in the CoreLogic S&P Gas-Shiller index are up 7% year-to-date and 1% above the 2022 peak, reversing all losses recorded in the second half of 2022,” said Selma Hebb. , Chief Economist at CoreLogic. “Given the strong seasonal gains seen in early 2023, annual home price growth should accelerate this winter before slowing again next year.”
Don't miss these stories from CNBC PRO:
