In November, U.S. home prices declined 0.6 percent from October, falling for the fifth consecutive month, according to the S&P CoreLogic Case-Shiller National Home Price Index.
Prices were down 3.6 percent from June through November, the data showed.
On a yearly basis, the index rose 7.7 percent in November, also a decline from the 9.2-percent gain the month previous.
An index by the Federal Housing Finance Agency mirrored Case-Shiller’s direction, showing prices down 0.1 percent in November and up 8.2 percent year on year.
November’s median home price was $370,700, compared to $379,100 in October, the National Association of Realtors reported.
Prices fell fastest in the West, with houses in Phoenix losing 1.9 percent in November from October, and homes in Las Vegas giving up 1.7 percent.
Sales of existing homes decreased 17.8 percent in 2022, marking the smallest volume since 2014 as the U.S. Federal Reserve carried out the most aggressive series of interest rate hikes in four decades, The Wall Street Journal said.
TREND FORECAST: Home prices are falling, mortgage interest rates have stabilized around the low- to mid-six percent range, and more shoppers are booking home tours.
However, the housing market will remain weak until the U.S. Federal Reserve holds its interest rate steady for at least two consecutive meetings.
At that point, more buyers and sellers will be able to have firmer expectations about the future that will allow them to make decisions about whether to buy or sell.
However, as we had forecast when interest rates began to rise, housing prices would fall but there would be no housing crash. And now, despite interest rate hikes, the 30-year mortgages are down by almost one percent from their 7 percent November high.
And even though rates are twice as high as they were a year ago, with rates going down, mortgage applications are up some 25 percent since the end of the year.
Minus a global catastrophe, such as a nuclear war or other wild card event, we forecast the worst of the housing downturn is over, and as noted by the National Association of Realtors, pending home sales rose 2.5 percent in December.
What will also bring down housing is a deep recession. The more people fired from their jobs, the less people will be able to buy homes and those with high mortgage payments will default.