U.S. home prices increased 0.4% in November compared with October and were up 3.6% compared with November 2024, but the rate of appreciation continues to slow, according the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.
Month-over-month, the index’s 20-city and 210-city composites – measuring home prices in the 20 largest U.S. metros – each increased 0.4%, on a seasonally adjusted basis.
Without seasonal adjustment, the national index was down -0.1%, while the 20-city composite saw a -0.1% decline and the 10-city composite was flat.
Of the 20 cities, New York again reported the highest annual gain, with a 7.3% increase, followed by Chicago and Washington with annual increases of 6.2% and 5.9%, respectively. Tampa posted the lowest return, falling 0.4%.
“With the exception of pockets of above-trend performance, national home prices are trending below historical averages,” says Brian D. Luke, CFA, head of commodities, real and digital assets, S&P CoreLogic, in a statement. “Markets in New York, Washington, D.C., and Chicago are well above norms, with New York leading the way. Unsurprisingly, the Northeast was the fastest growing region, averaging a 6.1 percent annual gain.”
“However, markets out west and in once red-hot Florida are trending well below average growth,” Luke says. “Tampa’s decline is the first annual drop for any market in over a year. Returns for the Tampa market and entire Southern region rank in the bottom quartile of historical annual gains, with data going back to 1988.”
“Despite below-trend growth, our national Index hit its 18th consecutive all-time high on a seasonally adjusted basis,” Luke adds. “Again, with the exception of Tampa, all markets rose monthly with seasonal adjustment. With New York leading the nation for the seventh consecutive month and U.S. banks reporting strong fourth quarter earnings, this could set the Big Apple up as we close out the year.”
“The nation’s economy continues to be resilient against long-term economic setbacks, which means that the Fed is in no imminent need to continue its rate cuts,” says Selma Hepp, chief economist for CoreLogic, in a separate statement. “And with the economic activity expected to remain robust and continue to post a 2-percent-plus growth rate, the case for further monetary loosening in the coming months is increasingly less compelling. Nevertheless, there are sectors of the economy, such as the housing market and pockets of the income spectrum, that are challenged by high rates and overall high prices. And, with mortgage rates expected to remain higher for longer and with limited inventory, existing home sales activity keeps reaching new lows. In contrast, home builders have added more new homes last year and continue to offer rate buydowns on new construction, keeping those sales strong.”
Photo: David Nieto
