In September, the housing price growth in the United States slowed down, continuing to favor buyers in the real estate market.
According to the S&P CoreLogic Case-Shiller Home Price Indices released on Tuesday, November 26, the national housing prices increased by 3.9% compared to the same period last year, which is lower than the 4.3% year-over-year growth in August. This marks the sixth consecutive month of deceleration in the year-over-year housing price growth in the United States.
In September, the slowdown in housing prices was more pronounced in the Western markets and metropolitan areas, making it increasingly difficult for homebuyers in these regions to afford homes.
It is expected that national housing prices will further cool down before experiencing a rebound in growth by mid-next year. The latest Case-Shiller Home Price Indices report predicts that by August next year, the rate of price increase will slow down to 2.3%.
In September, the non-seasonally adjusted Case-Shiller Home Price Indices showed a 0.1% month-over-month decrease, significantly lower than the average monthly increase of 0.12% from September between 2015 and 2019. This decline stands in stark contrast to the 0.3% monthly growth rate in September 2023.
As mortgage interest rates continue to rise, exerting greater pressure on home buying demand, the pace of housing price increases during the summer and fall of this year has notably slowed down compared to the previous year. This marks the first monthly decline in September since the initial surge in mortgage rates during the summer of 2022.
Despite the overall slowdown in national housing price growth, the Case-Shiller Home Price Indices report shows that in September, the composite price indices for the top 10 and top 20 major cities in the United States still saw a year-over-year increase of 4.6%, down from 5.2% in August. New York recorded the highest increase at 7.5%, followed by Cleveland and Chicago.
In recent weeks, borrowing costs have been rising, posing a threat to the demand for home purchases.