Home Prices Hold, With Long Road AheadBy Jesse Williams
Home prices fell again in September, according to the latest reading from the S&P Case-Shiller Index, down a modest 0.8% from August, as inventory shortages and a strong job market have seemingly prevented an all-out rout in home values.
With prices still up 10.6% from last year, a swift and volatile rise in mortgage rates has certainly depressed real estate markets across the country. Many economists are hoping for a so-called soft landing, and a housing correction that stabilizes in relatively short order. But the possibility of a slower market and elevated mortgage rates extending deep into 2023 is real, with some large real estate companies planning for the worst. Key findings:
“As has been the case for the past several months, our September 2022 report reflects short-term declines and medium-term deceleration in housing prices across the U.S…for all three composites. Year-over-year gains, while still well above their historical medians, peaked roughly six months ago and have decelerated since then. “As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable. Given the continuing prospects for a challenging macroeconomic environment, home prices may well continue to weaken.”
Jesse Williams is a senior editor for RISMedia. |
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