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S&P CORELOGIC CASE-SHILLER INDEX UPWARD TREND DECELERATES IN NOVEMBER

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S&P Dow Jones Indices released the latest results for the S&P CoreLogic Case-Shiller Indices, showing a 5.1% annual gain in U.S. home prices in November 2023. However, 12 out of 20 major metro markets reported month-over-month price decreases. Detroit and San Diego reported the highest year-over-year gains, while Portland remained the only city reporting lower prices.
Positive
  • 5.1% annual gain in U.S. home prices
  • Detroit and San Diego reported the highest year-over-year gains
  • Six cities registered a new all-time high in November
Negative
  • 12 out of 20 major metro markets reported month-over-month price decreases
  • Portland remained the only city reporting lower prices

Insights

The reported 5.1% annual gain in the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index indicates a sustained growth in home prices, albeit at a slower pace than earlier in the year. This trend suggests that while the housing market remains robust, it may be showing signs of cooling. The month-over-month price decreases in 12 out of the 20 major metro markets could reflect the impact of higher mortgage rates, which have peaked recently. The data implies a potential shift in housing demand, with affordability challenges possibly starting to dampen buyer enthusiasm.

Furthermore, the regional disparities in the housing market performance, with Detroit and San Diego leading annual gains, contrast with the overall national deceleration. This could signal underlying economic strengths in these areas or possibly a lagged response to broader national trends. The reported narrowest spread of performance since Q1 2021 indicates a convergence in regional market dynamics, which could lead to more uniform national housing policies.

For stakeholders, including homeowners, investors and policymakers, these trends highlight the need for a nuanced understanding of regional market conditions. The data also serves as a leading indicator for the construction industry and related sectors, potentially influencing stock market sectors associated with homebuilding and mortgage financing.

The S&P CoreLogic Case-Shiller Indices serve as a key barometer for the real estate sector and the reported data has implications for various market participants. The year-over-year increase in home prices, despite the month-over-month declines, suggests that the market retains underlying strength. However, the cessation of the nine-month streak of price increases could indicate the beginning of a market correction or stabilization.

Investors in real estate investment trusts (REITs) and housing-related stocks should consider the impact of these trends on future revenue streams. The nuances in regional performance, particularly the strong growth in cities like Detroit and San Diego, may guide investment strategies towards markets with higher growth potential.

The historical comparison of current levels to the 2006 peaks and 2012 troughs provides context for the long-term recovery and growth of the housing market. This historical perspective is crucial for understanding the cyclical nature of real estate and for setting realistic expectations for future performance.

The S&P CoreLogic Case-Shiller Indices data has several implications for the financial markets. The observed cooling trend in home prices could signal a shift in consumer sentiment and spending, which might affect the broader economy. The real estate sector's performance is closely tied to consumer confidence and financial stability and a downturn could have a ripple effect on other sectors.

From a macroeconomic perspective, the interplay between home prices and interest rates is critical. The recent peak in mortgage rates and subsequent decline could influence homebuyer behavior and, by extension, home prices in the coming months. Financial analysts should monitor these indicators to assess the potential impact on banking and lending institutions, as well as the overall economic outlook.

The data also serves as a valuable input for forecasting future inflation trends, given the weight of housing costs in the consumer price index (CPI). A deceleration in home price growth could contribute to a moderation in inflationary pressures, which would be of particular interest to bond market investors and central bank policymakers.

NEW YORK, Jan. 30, 2024 /PRNewswire/ -- S&P Dow Jones Indices (S&P DJI) today released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released today for November 2023 show that 12 out of the 20 major metro markets reported month-over-month price decreases. More than 27 years of history are available for the data series and can be accessed in full by going to www.spglobal.com/spdji/en/index-family/indicators/sp-corelogic-case-shiller.

YEAR-OVER-YEAR

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.1% annual gain in November, up from a 4.7% rise in the previous month. The 10-City Composite showed an increase of 6.2%, up from a 5.7% increase in the previous month. The 20-City Composite posted a year-over-year increase of 5.4%, up from a 4.9% increase in the previous month. Once again, Detroit reported the highest year-over-year gain among the 20 cities with an 8.2% increase in November, followed again by San Diego with an 8% increase. For the third month in a row, Portland fell 0.7% and remained the only city reporting lower prices in November versus a year ago.

MONTH-OVER-MONTH

For the first time since January 2023, the U.S. National Index and 20-City Composite posted 0.2% month-over-month decreases in November, while the 10-City Composite posted a 0.1% decrease.

After seasonal adjustment, the U.S. National Index and the 10-City Composite posted month-over-month increases of 0.2%, while the 20-City Composite posted a month-over-month increase of 0.1%.

ANALYSIS

"U.S. home prices edged downward from their all-time high in November," says Brian D. Luke, Head of Commodities, Real & Digital Assets at S&P DJI. "The streak of nine monthly gains ended in November, setting the index back to levels last seen over the summer months. Seattle and San Francisco reported the largest monthly declines, falling 1.4% and 1.3%, respectively."

"November's year-over-year gain saw the largest growth in U.S. home prices in 2023, with our National Composite rising 5.1% and the 10-city index rising 6.2%. Detroit held its position as the best performing market for the third month in a row, accelerating to an 8.2% gain. San Diego notched an 8% annual gain, retaining its second spot in the nation. Barring a late surge from another market, those cities will vie for the 'housing market of the year' as the best performing city in our composite."    

"Six cities registered a new all-time high in November (Miami, Tampa, Atlanta, Charlotte, New York, and Cleveland). Portland remains the lone market in annual decline. The Northeast and Midwest recorded the largest gains with returns of 6.4% and 6.3%, respectively. Other regions are not far behind with the slowest gains in the West of 3%. This month's report revealed the narrowest spread of performance across the nation since the first quarter of 2021." 

"The tight disparity speaks to a rising tide across the country, with less evidence of micro-markets bucking the trend. The days of markets in the South rising double digits with markets in the Midwest remaining flat are over. The house price decline came at a time where mortgage rates peaked, with the average Freddie Mac 30-year fixed rate mortgage nearing 8%, according to Federal Reserve data. The rate has since fallen over 1%, which could support further annual gains in home prices."

Table 1 below shows the housing boom/bust peaks and troughs for the three composites along with the current levels and percentage changes from the peaks and troughs.


2006 Peak

2012 Trough

Current

Index

Level

Date

Level

Date

From Peak
(%)

Level

From Trough
(%)

From Peak
(%)

National

184.61

Jul-06

134.00

Feb-12

-27.4 %

312.15

132.9 %

69.1 %

20-City

206.52

Jul-06

134.07

Mar-12

-35.1 %

318.24

137.4 %

54.1 %

10-City

226.29

Jun-06

146.45

Mar-12

-35.3 %

333.31

127.6 %

47.3 %

Table 2 below summarizes the results for November 2023. The S&P CoreLogic Case-Shiller Indices could be revised for the prior 24 months, based on the receipt of additional source data.


November 2023

November/October 

October/September 

1-Year 

 Metropolitan Area

 Level 

Change (%) 

Change (%) 

Change (%) 

Atlanta

241.91

0.0 %

0.2 %

5.9 %

Boston

322.73

-0.2 %

0.3 %

7.1 %

Charlotte

271.05

0.2 %

0.3 %

7.0 %

Chicago

197.67

-0.4 %

0.3 %

7.0 %

Cleveland

184.16

0.3 %

0.2 %

7.4 %

Dallas

292.41

-0.6 %

-0.3 %

1.7 %

Denver

311.96

-0.9 %

-0.6 %

1.5 %

Detroit

181.87

-0.4 %

0.4 %

8.2 %

Las Vegas

284.64

0.2 %

0.3 %

2.1 %

Los Angeles

420.57

0.1 %

0.4 %

7.2 %

Miami

428.20

0.3 %

0.6 %

7.2 %

Minneapolis

234.35

-0.8 %

-0.3 %

2.7 %

New York

294.23

0.3 %

0.4 %

7.4 %

Phoenix

324.91

-0.3 %

0.6 %

2.5 %

Portland

319.06

-1.0 %

-0.9 %

-0.7 %

San Diego

416.36

-0.5 %

-0.1 %

8.0 %

San Francisco

343.59

-1.3 %

-0.6 %

2.0 %

Seattle

363.85

-1.4 %

-0.5 %

1.6 %

Tampa

383.22

0.1 %

0.0 %

3.4 %

Washington

312.50

-0.3 %

-0.3 %

4.7 %

Composite-10

333.31

-0.1 %

0.2 %

6.2 %

Composite-20

318.24

-0.2 %

0.1 %

5.4 %

U.S. National

312.15

-0.2 %

0.1 %

5.1 %

 Sources: S&P Dow Jones Indices and CoreLogic 

 Data through November 2023

Table 3 below shows a summary of the monthly changes using the seasonally adjusted (SA) and non-seasonally adjusted (NSA) data. Since its launch in early 2006, the S&P CoreLogic Case-Shiller Indices have published, and the markets have followed and reported on, the non-seasonally adjusted data set used in the headline indices. For analytical purposes, S&P Dow Jones Indices publishes a seasonally adjusted data set covered in the headline indices, as well as for the 17 of 20 markets with tiered price indices and the five condo markets that are tracked.


November/October Change (%) 

October/September Change (%) 

 Metropolitan Area

NSA 

SA 

NSA

SA 

Atlanta

0.0 %

0.4 %

0.2 %

0.6 %

Boston

-0.2 %

0.1 %

0.3 %

1.0 %

Charlotte

0.2 %

0.7 %

0.3 %

0.7 %

Chicago

-0.4 %

0.4 %

0.3 %

0.7 %

Cleveland

0.3 %

0.9 %

0.2 %

0.7 %

Dallas

-0.6 %

0.1 %

-0.3 %

0.3 %

Denver

-0.9 %

-0.5 %

-0.6 %

0.4 %

Detroit

-0.4 %

0.2 %

0.4 %

1.2 %

Las Vegas

0.2 %

1.0 %

0.3 %

1.0 %

Los Angeles

0.1 %

0.5 %

0.4 %

0.7 %

Miami

0.3 %

0.7 %

0.6 %

0.9 %

Minneapolis

-0.8 %

0.0 %

-0.3 %

0.1 %

New York

0.3 %

0.2 %

0.4 %

0.3 %

Phoenix

-0.3 %

0.6 %

0.6 %

1.1 %

Portland

-1.0 %

-0.2 %

-0.9 %

-0.1 %

San Diego

-0.5 %

0.2 %

-0.1 %

0.6 %

San Francisco

-1.3 %

-0.8 %

-0.6 %

0.6 %

Seattle

-1.4 %

-0.8 %

-0.5 %

0.5 %

Tampa

0.1 %

0.5 %

0.0 %

0.4 %

Washington

-0.3 %

0.0 %

-0.3 %

0.3 %

Composite-10

-0.1 %

0.2 %

0.2 %

0.6 %

Composite-20

-0.2 %

0.1 %

0.1 %

0.6 %

U.S. National

-0.2 %

0.2 %

0.1 %

0.6 %

 Sources: S&P Dow Jones Indices and CoreLogic

 Data through November 2023

For more information about S&P Dow Jones Indices, please visit www.spglobal.com/spdji.

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji.

FOR MORE INFORMATION:

April Kabahar
Global Head of Communications
New York, USA
(+1) 212 438 7530
april.kabahar@spglobal.com

S&P Dow Jones Indices' interactive blog, IndexologyBlog.com, delivers real-time commentary and analysis from industry experts across S&P Global on a wide-range of topics impacting residential home prices, homebuilding and mortgage financing in the United States. Readers and viewers can visit the blog at www.indexologyblog.com, where feedback and commentary are welcomed and encouraged.

The S&P CoreLogic Case-Shiller Indices are published on the last Tuesday of each month at 9:00 am ET. They are constructed to accurately track the price path of typical single-family homes located in each metropolitan area provided. Each index combines matched price pairs for thousands of individual houses from the available universe of arms-length sales data. The S&P CoreLogic Case-Shiller U.S. National Home Price Index tracks the value of single-family housing within the United States. The index is a composite of single-family home price indices for the nine U.S. Census divisions and is calculated quarterly. The S&P CoreLogic Case-Shiller 10-City Composite Home Price Index is a value-weighted average of the 10 original metro area indices. The S&P CoreLogic Case-Shiller 20-City Composite Home Price Index is a value-weighted average of the 20 metro area indices. The indices have a base value of 100 in January 2000; thus, for example, a current index value of 150 translates to a 50% appreciation rate since January 2000 for a typical home located within the subject market.

These indices are generated and published under agreements between S&P Dow Jones Indices and CoreLogic, Inc.

The S&P CoreLogic Case-Shiller Indices are produced by CoreLogic, Inc. In addition to the S&P CoreLogic Case-Shiller Indices, CoreLogic also offers home price index sets covering thousands of zip codes, counties, metro areas, and state markets. The indices, published by S&P Dow Jones Indices, represent just a small subset of the broader data available through CoreLogic.

Case-Shiller® and CoreLogic® are trademarks of CoreLogic Case-Shiller, LLC or its affiliates or subsidiaries ("CoreLogic") and have been licensed for use by S&P Dow Jones Indices. None of the financial products based on indices produced by CoreLogic or its predecessors in interest are sponsored, sold, or promoted by CoreLogic, and neither CoreLogic nor any of its affiliates, subsidiaries, or predecessors in interest makes any representation regarding the advisability of investing in such products.

Cision View original content:https://www.prnewswire.com/news-releases/sp-corelogic-case-shiller-index-upward-trend-decelerates-in-november-302048166.html

SOURCE S&P Dow Jones Indices

FAQ

What was the annual gain in U.S. home prices in November 2023?

The annual gain in U.S. home prices in November 2023 was 5.1%.

Which cities reported the highest year-over-year gains?

Detroit and San Diego reported the highest year-over-year gains.

Which city remained the only one reporting lower prices?

Portland remained the only city reporting lower prices.

How many metro markets reported month-over-month price decreases?

12 out of 20 major metro markets reported month-over-month price decreases.

How many cities registered a new all-time high in November?

Six cities registered a new all-time high in November.

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