Latest news with #S&PCase-Shiller
NBC News
24-06-2025
- Business
- NBC News
Home price hikes are slowing more than expected
Rising supply and slowing demand in the housing market are finally causing prices to cool off, and the weakness is accelerating. Home prices nationally rose just 2.7% in April compared with the previous year, according to the S&P CoreLogic Case-Shiller Index released Tuesday. That is down from a 3.4% annual increase in March and is the smallest gain in nearly two years. The report is slightly backdated, as it is a three-month running average of prices ended in April. Other more current readings of the market, such as one from Parcl Labs, shows prices nationally are now flat compared with a year ago. S&P Case-Shiller found the deceleration in prices was taking hold across the 10- and 20-city composites its index measures. Both are now substantially below their recent peaks. In addition, much of the annual increase in the April reading occurred in just the past six months, meaning prices got a boost from the spring market rather than showing up throughout the year. 'What's particularly striking is how this cycle has reshuffled regional leadership—markets that were pandemic darlings are now lagging, while historically steady performers in the Midwest and Northeast are setting the pace. This rotation signals a maturing market that's increasingly driven by fundamentals rather than speculative fervor,' said Nicholas Godec, head of fixed income at S&P Dow Jones Indices, in a release. New York saw the biggest increase in prices, with a 7.9% annual gain, followed by Chicago at 6% and Detroit at 5.5%. This is a shift from the first years of the pandemic, when the Sun Belt was seeing huge demand and big price gains. Prices in those previously hot markets are now falling. Both Tampa, Florida, and Dallas turned negative, down 2.2% and 0.2%, respectively. San Francisco prices were basically flat, and both Phoenix and Miami eked out gains of just over 1%. Higher mortgage rates, which shot over 7% in April and have settled back just under that mark since then, are keeping potential monthly payments near generational highs and pricing out significant pools of buyers, especially first-timers. That share dropped to just 30% of May sales, according to the National Association of Realtors. First-time buyers historically make up 40% of the market. The supply of homes for sale is rising sharply, but is still below pre-pandemic levels. Just 6% of sellers are at risk of selling at a loss, according to a new report from Redfin. That is slightly higher than a year ago, but still historically low. While prices are certainly weakening, they are nowhere close to being at risk of the major declines last seen following the subprime mortgage crisis and the Great Recession over a decade ago. 'Housing supply remains severely constrained, with existing homeowners reluctant to surrender their sub-4% pandemic-era rates and new construction failing to meet demand. This supply-demand imbalance continues to provide a price floor, preventing the sharp corrections that some had feared,' said Godec.
CNBC
24-06-2025
- Business
- CNBC
Home price hikes are slowing more than expected
Rising supply and slowing demand in the housing market are finally causing prices to cool off, and the weakness is accelerating. Home prices nationally rose just 2.7% in April compared with the previous year, according to the S&P CoreLogic Case-Shiller Index released Tuesday. That is down from a 3.4% annual increase in March and is the smallest gain in nearly two years. The report is slightly back-dated, as it is a three-month running average of prices ending in April. Other more current readings of the market, such as one from Parcl Labs, shows prices nationally are now flat compared with a year ago. S&P Case-Shiller found the deceleration in prices was taking hold across the 10- and 20-city composites its index measures. Both are now substantially below their recent peaks. In addition, much of the annual increase in the April reading occurred in just the past six months, meaning prices got a boost from the spring market rather than showing up throughout the year. "What's particularly striking is how this cycle has reshuffled regional leadership—markets that were pandemic darlings are now lagging, while historically steady performers in the Midwest and Northeast are setting the pace. This rotation signals a maturing market that's increasingly driven by fundamentals rather than speculative fervor," said Nicholas Godec, head of fixed income at S&P Dow Jones Indices, in a release. New York saw the biggest increase in prices, with a 7.9% annual gain, followed by Chicago at 6% and Detroit at 5.5%. This is a shift from the first years of the pandemic, when the Sun Belt was seeing huge demand and big price gains. Prices in those previously hot markets are now falling. Both Tampa and Dallas turned negative, down 2.2% and 0.2% respectively. San Francisco prices were basically flat, and both Phoenix and Miami eked out gains of just over 1%. Higher mortgage rates, which shot over 7% in April and have settled back just under that mark since then, are keeping potential monthly payments near generational highs and pricing out significant pools of buyers, especially first-timers. That share dropped to just 30% of May sales, according to the National Association of Realtors. First-time buyers historically make up 40% of the market. The supply of homes for sale is rising sharply, but is still below pre-pandemic levels. Just 6% of sellers are at risk of selling at a loss, according to a new report from Redfin. That is slightly higher than a year ago, but still historically low. While prices are certainly weakening, they are nowhere close to being at risk of the major declines last seen following the subprime mortgage crisis and the Great Recession over a decade ago. "Housing supply remains severely constrained, with existing homeowners reluctant to surrender their sub-4% pandemic-era rates and new construction failing to meet demand. This supply-demand imbalance continues to provide a price floor, preventing the sharp corrections that some had feared," said Godec.
NBC News
30-01-2025
- Business
- NBC News
Pending home sales drop sharply in December as mortgage rates surge back over 7%
Signed contracts on existing homes dropped a sharp 5.5% in December from the previous month and fell 5% from the prior year, according to the National Association of Realtors. The drop followed four straight months of gains and the index was at its lowest level since August. These so-called pending sales are an indicator of future closings and are the most current indicator of activity in the market. Buyers out shopping in December were facing a big jump in mortgage interest rates, which may have dampened demand. The average rate on the 30-year fixed mortgage went from a low of 6.68% on Dec. 6 to a high of 7.14% on Dec. 19. Realtors had been saying that buyers were getting used to a 'new normal' of higher interest rates, but the 7% mark appears to be an emotional barrier for buyers. Sales of newly built homes, which are also based on signed contracts, saw gains in December, according to the U.S. Census, but homebuilders have been aggressively buying down mortgage rates to get customers in the door. Pending sales fell in all regions, with the West and Northeast seeing the biggest monthly drops at decreases of 8.1% and 10.3%, respectively. Those regions are where home prices are highest. 'Contract activity fell more sharply in the high-priced regions of the Northeast and West, where elevated mortgage rates have appreciably cut affordability,' said Lawrence Yun, chief economist for the National Association of Realtors. 'Job gains tend to have greater impact in more affordable regions. It is unclear if heavier-than-usual winter precipitation impacted the timing of purchases.' Prices are still stubbornly high and rising across the nation. Annual gains accelerated in late fall and early winter, according to the latest read from the S&P Case-Shiller national home price index. Homebuying demand does not appear to be bouncing back at all in January. Mortgage applications to purchase a home last week were 7% lower than they were the same week one year ago, according to the Mortgage Bankers Association. Homes are also selling at the slowest rate in five years, according to a new report from Redfin. As of the four weeks ending Jan. 26, the typical home listing that went under contract sat on the market for 54 days before the seller accepted an offer, the longest span since March 2020 and a week longer than this time last year. The weakness comes as the supply of homes for sale is finally rising significantly. The number of newly listed homes jumped just over 37% in January compared with December, according to 'The shift in seller activity could mark a turning point in the high mortgage rate-induced standoff between buyers and sellers,' said Danielle Hale, chief economist at 'The uptick is likely due to some residual benefit from fall's lower mortgage rates, which could fade.'
