Home prices had a 5.8% annual gain in December, down from a gain of 7.6% in November, according to the latest S&P CoreLogic Case-Shiller Indices.
It is the sixth consecutive month of “cooling” home prices, according to S&P. The 10-City Composite annual increase was 4.4% (down from 6.3% in November), and the 20-City Composite annual increase was 4.6% (down from 6.8%).
“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,” stated Craig Lazzara, managing director at S&P DJI. “Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken.”
Miami, Tampa and Atlanta reported the highest year-over-year home price gains among the 20 cities, increasing 15.9%, 13.9% and 10.4%, respectively.
