From MarketWatch:
Home prices continued ascent in September despite soaring mortgage rates: Case-Shiller
Home prices showed no signs of slowing in September despite the record-high mortgage rates that rendered housing unaffordable for many Americans, according to the latest S&P CoreLogic Case-Shiller Indices report.
Nationwide, home prices rose by 0.3% in September and now stand 3.9% above its year-ago level. The 10-city composite gained 4.8% and the 20-city composite increased 3.9% – the indices measure home prices in major metros across the country. Both indices posted a 0.7% month-over-month increase in September.
Home prices now stand 6.6% above where they started the year despite rising mortgage rates. The September Case-Shiller tracks July, August and September when mortgage rates climbed steadily from 6.8% at the beginning of July to 7.3% by the end of September. At the same time, housing inventory has remained low. Existing home sales dropped 2% in September to a 13-year low, according to research from Realtor.com.
“Speeding up of annual home price growth reflects much of the pent-up demand that exists in the housing market amid very low inventories,” CoreLogic Chief Economist Dr. Selma Hepp said in a statement. “Nevertheless, home prices are feeling the weight of high mortgage rates, which will slow the rate of price growth in the coming months. Still, despite the dramatic increase in the cost of homeownership, home prices have risen 6.4% this year – meaningfully beyond expectations given the rise in borrowing costs.”
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Detroit, San Diego and New York led the way for the fastest-growing cities in the U.S. Detroit reported the highest year-over-year growth, with an annual increase of 6.7%. San Diego and New York followed with gains of 6.5% and 6.3%, respectively.
September’s worst-performing cities were Las Vegas, Phoenix and Portland. Las Vegas saw the most significant year-over-year decline, with prices dipping 1.9%. Phoenix and Portland followed with a decrease in growth of 1.2% and 0.7%, respectively.