Home Prices Declined 0.2% in April, Says Case-Shiller

New York, NY, June 27, 2023-Home prices declined -0.2% annually in April, down from a gain of 0.7% in the previous month, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions. 

The Ten-City Composite showed a decrease of -1.2%, down from the -0.7% decrease in the previous month. The 20-City Composite posted a -1.7% year-over-year loss, down from -1.1% in the previous month.

Miami, Florida; Chicago, Illinois; and Atlanta, Georgia reported the highest year-over-year gains among the 20 cities in March. Miami held the top spot again with a 5.2% year-over-year price increase, while Chicago broke into the top three in second with a 4.1% increase, and Atlanta reclaiming third over Charlotte, North Carolina with a 3.5% increase. There are 17 of 20 cities reporting lower prices in the year ending April 2023 versus the year ending March 2023, with Boston Massachusetts; San Francisco, California; and Cleveland, Ohio showing slight increases of 0.1%, 0.1% and 0.9%, respectively.

Before seasonal adjustment, the U.S. National Index posted a 1.3% month-over-month increase in April, while the Ten-City and 20-City Composites both posted increases of 1.7%.

After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 0.5%, while the Ten-City Composite gained 1.0% and 20-City Composites posted an increase of 0.9%.

Says the WSJ, “Home prices posted their first year-over-year price decline in 11 years in April, as higher mortgage rates made home purchases more expensive for buyers.

“The S&P CoreLogic Case-Shiller National Home Price Index, which measures home prices across the nation, fell 0.2% in April, compared with a 0.7% annual growth rate the prior month. The annual decline was the first for the index since April 2012.

“Compared with the prior month, the index rose 0.5% in April on a seasonally adjusted basis, the third straight monthly increase.

“Mortgage rates rose rapidly in 2022, causing a major slowdown in home sales as buyers backed away from the market. House-buying affordability in April fell to its lowest level since November, according to the Federal Reserve Bank of Atlanta.

“But prices haven’t declined as much as many economists expected, because the higher mortgage rates made current homeowners reluctant to sell, keeping the supply of homes on the market lower than normal.”