Prices remained up 20% year-to-year in April, but the monthly rate of increase appears to be slowing as the Fed’s interest rate hikes seem to be having an impact.
NEW YORK – A leading measure of U.S. home prices, the S&P CoreLogic Case-Shiller Indices (S&P DJI), found that home prices continued to rise in April at an unsustainable rate.
The Index, which covers all nine U.S. census divisions, reported a 20.4% annual gain in April. However, that’s slightly less than the 20.6% recorded one month earlier.
Tampa, Miami, and Phoenix reported the highest year-over-year gains among the 20 cities in April. Tampa led the way with a 35.8% year-over-year price increase, followed by Miami with a 33.3% increase, and Phoenix with a 31.3% increase. Nine of the 20 cities reported higher price increases in the year ending April 2022 versus the year ending March 2022.
The 10-City Composite annual increase came in at 19.7%, up from 19.5% in the previous month. The 20-City Composite posted a 21.2% year-over-year gain, up from 21.1% in the previous month.
“April 2022 showed initial (although inconsistent) signs of a deceleration in the growth rate of U.S. home prices,” says Craig J. Lazzara, managing director at S&P DJI.
“We continue to observe very broad strength in the housing market, as all 20 cities notched double-digit price increases for the 12 months ended in April,” Lazzara adds. In contrast with the past five months, when prices in most cities accelerated, in April only nine cities saw prices rise faster than they had done in March.
Lazzara says the price rises have a regional pattern “as all five cities in our South composite (Atlanta, Charlotte, Dallas, Miami, and Tampa) are represented there.”
Tampa (up 35.8%) was the fastest growing city for the second consecutive month, with Miami (up 33.3%) and long-time leader Phoenix (up 31.3%) in second and third positions.
Prices were strongest in the South (up 30.6%) and Southeast (+30.5%), though even the comparatively weak Midwest (+13.8%) and Northeast (+14.0%) showed double-digit gains.
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