Home prices rose in March, marking the second straight month of gains, according to S&P CoreLogic Case-Shiller’s monthly survey.
The national index for nine census regions rose 0.7% after rising 2% in February. The rise was much smaller than last year, but it suggests prices may be holding steady amid high mortgage rates and limited inventory of homes for sale.
Miami, Tampa, and Charlotte had the highest year-over-year price increases of 7.7%, 4.8%, and 4.7%, respectively.
“The gradual rise in home prices seen a month ago accelerated in March 2023,” said Craig J. Lazzara, managing director of index investment strategy at S&P DJI. “Although two months of price increases have not resulted in a definitive recovery, March’s results suggest that the decline in house prices that began in June 2022 may have come to an end.”
“That said, the challenges posed by current mortgage rates and the potential for continued economic weakness are likely to be headwinds for house prices, at least in the coming months,” he added.
Hannah Jones, an economic data analyst at Realtor.com, said ahead of the announcement, “Buyers face budgetary challenges and limited competition for new properties due to still high housing costs and low inventory levels. The housing market is somewhat stuck,” he said.
“As a result, pending home sales flattened out in April, indicating subdued buyer demand and limited available housing supply,” she added. “However, recent stabilizing mortgage rates and slowing listed price growth have provided some welcome breathing room. Until home prices or mortgage rates fall sufficiently to be balanced by activity from both buyers and sellers, the housing market remains relatively tense. The situation is likely to continue.”
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