- US home prices rose 0.9 percent in August from the previous month – the seventh consecutive monthly increase
- According to an index of the country’s 20 largest cities, 12 saw house prices rise in the year ending August 2023
- Chicago saw home prices rise 5 percent, while Las Vegas saw prices drop 4.9 percent
US home prices rose for the seventh straight month in August, reaching a record high, according to new data.
According to Statistics Netherlands, prices rose by 0.9 percent in August compared to the previous month S&P CoreLogic Case-Shiller U.S. National Home Price Index – the main measure of US home prices.
It means properties are up 2.6 percent year-over-year, Case-Shiller data shows.
Mortgage rates are at their highest level in decades, with the average 30-year fixed rate hovering around 7.79 percent, according to government-backed lender Freddie Mac. Rising mortgage rates and historically low inventories have continued to push up home prices in most of the nation’s 20 largest cities.
According to Case-Shiller’s 20-city composite, 12 cities saw average home prices increase in the year ending August 2023 compared to the year ending July 2023, while seven cities saw prices decrease and one remained unchanged.
These are the five cities where home prices have risen the most, and the five where they’ve fallen the most, according to the S&P CoreLogic Case-Shiller US National Home Price Index
Chicago led the way in real estate hotspots, with a 5 percent increase in prices from the year before.
This was the fourth month in a row that costs rose in the city, the data showed.
New York City followed closely, with homes rising 4.98 percent from a year ago, and prices in Detroit rose 4.8 percent.
San Diego and Cleveland also saw properties increase in value by 4.1 percent and 3.9 percent, respectively.
House prices also rose in Washington and Atlanta by 3.4 percent, in Miami by 3.3 percent, in Los Angeles by 3.2 percent, in Boston by 3.1 percent, in Charlotte by 3 percent and in Minneapolis by 1. 9 percent.
Home prices in Tampa were unchanged, but Las Vegas was the biggest cold spot, with prices falling 4.9 percent from the year before.
Prices in Phoenix fell 3.9 percent, while prices in San Francisco fell 2.5 percent.
Dallas, meanwhile, saw home prices drop 1.7 percent, and Seattle saw a decline of 1.5 percent.
The survey found that prices in Portland fell 1.5 percent, and prices in Denver fell 0.6 percent.
Chicago led the way in real estate hotspots, with a 5 percent increase in prices from the year before (photo: Millennium Park)
Home prices in Las Vegas (pictured) fell 4.9 percent from the year before, according to data from Case-Shiller
It comes after Wells Fargo warned that the housing market is headed for a 1980s-style recession.
Economists at the bank warned that the Federal Reserve’s plan to keep borrowing costs at higher levels well into next year in an effort to curb inflation will cause a decline in construction and activity in the market.
The Fed announced at its latest meeting on Wednesday that it would hold rates steady, but rates are still at a 22-year high of between 5.25 and 5.5 percent.
“After a broad improvement in the first half of 2023, the housing sector now appears to be contracting, in addition to the recent rise in mortgage rates,” Wells Fargo economists Charlie Dougherty and Patrick Barley wrote in an article. research note.
“While mortgage rates may gradually decline once the Federal Reserve begins to ease monetary policy, borrowing costs are likely to remain elevated compared to recent norms,” she added.
“An environment of ‘higher and longer interest rates’ would likely not only depress demand, but could also limit supply by reducing new construction and discouraging potential sellers with low mortgage rates from putting their homes up for sale.”