Housing Market Trends in the U.S.

SOURCE www.breitbart.com
Despite the highest mortgage rates in decades, the persistent shortage of homes on the market is causing house prices to climb. The S&P CoreLogic Case-Shiller 20-city price index rose for the 11th straight month in December, with home prices up 6.1% compared to a year earlier.

Key Points

  • Persistent shortage of homes on the market driving up house prices.
  • Home prices rose 6.1% compared to a year earlier despite high mortgage rates.
  • Homeowners with lower interest rates are reluctant to sell and buy new homes.
  • S&P CoreLogic Case-Shiller 20-city price index tracks repeat sales of homes.
  • December figures include deals signed as far back as August 2023.
  • National index and 10-city index also show price increases.

Pros

  • Rising home prices benefit current homeowners in terms of property value appreciation.
  • Boost in residential construction due to higher home prices.

Cons

  • Difficulties for potential buyers due to climbing house prices.
  • Reluctance among homeowners to sell and buy new homes due to higher mortgage rates.