Home prices continued their slow decline in October the housing market responded to mortgage rates exceeding 7 percent at times, according to data released by the real-estate data provider. National home prices fell 0.5 % percent between September and October while composites of the 10 and 20 largest cities in the US posted decreases of 0.7% and 0.8% respectively according to the S&P CoreLogic Case- Shiller Home Price Indices.
Annually, national home prices increased 9.2 percent in October, down from 10.7% increase recorded the previous month, according to the new data. The 10-city composite recorded an 8 percent annual increase while the 20-city composite increased by 8.6 percent. Both composites were down from 9.6 and 10.4 percent respective increases recorded in September.
The city with the weakest price growth was ultra-expensive San Fransisco which only increased 0.6% percent year over year, followed by Seattle where prices grew by 4.5 percent. Both San Francisco and Seattle saw price growth peak in May 2022 and have both declined by more than 10 percent since then.
A separate measure of housing price performance, the Federal Housing Finance Agency Home Price Index reported that housing prices rose 9.8% annually in October and that housing prices were flat nationwide between September and October.
The top performing city in October was Miami according to the S&P where home prices increased 21 percent year over a year followed by Tampa where they increased 20.5 percent and Charlotte where they increased 15 percent. October was the fourth straight month that the index recorded a home price decrease according to Craig Lazzara, Managing Director at S&P Dow Jones Indices.
The rise in mortgage rates has dramatically slowed the housing market from its breakneck pace of 2021 with existing home sales declining for 10-straight months. Oher economist pointed out that the steady decline in price appreciation shows that the housing market is in the midst of a correction, but that the rate at which prices are resetting is not as steep as some predicted.