By Manuel Gutierrez, Consulting Economist to NKBA
For the third consecutive month, house prices slipped, 0.8 percent in October from September, highlighting the weakening situation of the housing market.
- YOY, house prices are 10.6 percent higher — the smallest annual gain in almost two years. While annual price increases hovered around 20 percent in the 12 months ended in May, their pace has been gradually slowing, and are expected to continue to decline, spurred by inflation and higher mortgage rates.
- Overall, house prices have fallen more in large metro areas than in smaller and less-populated cities and towns.
- Regionally, the Southeast has seen house prices increase the most over last year. The West, meanwhile, has generally seen minimal price increases.
- Compared to a year ago, Miami and Tampa lead with the largest price increases in the last 12 months, 25 percent and 24 percent, respectively. Other metros posting large annual gains are Charlotte (18 percent), Atlanta (17 percent) and Dallas (16 percent).
- Increases in the price of condos lag single-family house price increases in four of the five cities tracked by the Case-Shiller Index. In Chicago, for example, condos are up 6 percent compared to 10 percent for single-family homes. On the other hand, in Los Angeles, condo prices rose 9.2 percent, which is 0.2 percent higher than the increase in single-family houses.
