- House prices rose for the third straight month in April.
- Miami recorded the biggest annual increase while Las Vegas, San Francisco, and Seattle were the worst-performing cities.
- PNC forecasts a 5% year-over-year decline in house prices in 2023.
House prices rose for the third straight month in April, according to the S&P CoreLogic Case-Shiller National Composite Index. The index rose 0.5% (after seasonal adjustments) in April from March following a 0.4% increase in March. House prices in the U.S. fell 0.2% in April from a year ago. With the monthly increase in April, house prices are about 2% below the June 2022 peak. The S&P CoreLogic Case-Shiller Index uses the repeat sales method to track single-family home prices monthly.
The S&P CoreLogic Case-Shiller 20-City Index recorded a 1.7% decline in April versus April 2022, following a 1.1% decline in March. Las Vegas (6.6%), San Francisco (11.1%), and Seattle (12.4%) experienced the biggest year-over-year declines. Atlanta (3.5%), Chicago (4.1%), and Miami (5.2%) reported the biggest year-over-year increases. Prices rose from the prior month in all cities tracked by the 20-city composite index except Phoenix.
The housing market appears to be stabilizing although challenges remain ahead. With elevated mortgage rates, existing homeowners with low mortgage rates have strong incentives to stay put, worsening the demand-supply imbalance in the housing market.
Demand will likely remain challenged by elevated mortgage rates in the near term although good consumer balance sheets and solid demographic dynamics are positives. New single-family homes should increase through 2023 as the labor market softens and inflation settles. The housing market will likely remain weak in the near term as interest rates remain elevated and the U.S. economy weakens. PNC forecasts a 5% year-over-year decline in house prices in 2023.
The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance, and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.
