U.S. home prices decreased 0.3% on an adjusted basis in December compared with November but were up 5.8% compared with December 2021, according to the S&P CoreLogic Case-Shiller home price index.
Month-over-month, the index’s 10-city and 20-city composites posted decreases of -0.4% and -0.5%, respectively.
Miami, Tampa, and Atlanta reported the highest year-over-year gains among the 20 cities in December.
Miami led the way with a 15.9% year-over-year price increase, followed by Tampa at 13.9% and Atlanta at 10.4%.
“The prospect of stable, or higher, interest rates means that mortgage financing remains a headwind for home prices, while economic weakness, including the possibility of a recession, may also constrain potential buyers,” says Craig J. Lazzara, managing director at S&P DJI, in a statement. “Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken.”