Home prices hit a new all-time high in December
Real estate agent Mauricio Umansky says high mortgage rates, high prices and low supply are creating difficulties for homebuyers on 'The Claman Countdown.'
Home prices rose for the 11th consecutive month in December, as housing inventory remained painfully low.
Prices increased 5.5% nationally in December when compared with the previous year, the S&P CoreLogic Case-Shiller index showed on Tuesday. That is up from the 5% annual increase recorded the prior month. On a monthly basis, prices fell 0.4%, according to the index.
The 10-city composite, which encompassed Los Angeles, Miami and New York, rose 7% annually, compared with an increase of 6.3% in November. The 20-city composite, which also tracked housing prices in Dallas and Seattle, posted an annual gain of 6.1%, which also marks an increase from the 5.4% figure recorded the previous month.
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Homes in Rocklin, California, on Dec. 6, 2022. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
There was a major discrepancy in the price gains in the 20 cities: San Diego reported an 8.8% annual gain in December, followed by Los Angeles and Detroit, each with an 8.3% increase. Portland, Oregon, saw the smallest gain in December, with home prices climbing just 0.3% from the prior year.
However, it marked the first time in 2023 that all 20 cities reported a year-over-year gain.
«While we are not experiencing the double-digit gains seen in the previous two years, above-trend growth should be well received considering the rising costs of financing home mortgages,» said Brian Luke, head of commodities, real and digital assets at S&P DJI, in a release.
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