Data released Tuesday for November 2018 shows that the rate of home price increases across the U.S. has continued to slow according to the S&P CoreLogic Case-Shiller home price report.
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Home prices on a non-seasonally adjusted basis in the 20 major U.S. metro areas posted a 0.1 percent decrease for the month of November.
The 20-City Composite posted a 4.7 percent year-over-year gain, down from 5.0 percent in the previous month. It also fell short of the 4.9 percent estimate.
“Home prices are still rising, but more slowly than in recent months,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “The pace of price increases are being dampened by declining sales of existing homes and weaker affordability. Sales peaked in November 2017 and drifted down through 2018. Affordability reflects higher prices and increased mortgage rates through much of last year. Following a shift in Fed policy in December, mortgage rates backed off to about 4.45% from 4.95%.
Las Vegas, Phoenix and Seattle reported the highest year-over-year gains among the 20 cities.
Home-price growth combined with rising mortgage rates has slowed sales in recent months.
Existing home sales posted their largest annual decline in seven years in November.