In September, the dynamic of housing prices in the United States continued to move within the growth trend.
In the American housing market, the increase in prices as of September was recorded for the eighth month in a row. In early autumn, mortgage rates in the United States were fixed at above 7%. At the same time, historically low stocks have become a factor in the growth of housing costs.
In September, the cost of real estate intended for permanent residence in the American market increased by 0.7% compared to the figure recorded in August. In this case, seasonal fluctuations in the data of the national housing price index S&P CoreLogic Case-Shiller are taken into account.
The national composite index indicates an increase in the value of the specified properties by 3.9% compared to the indicator that was recorded in September last year.
Between the beginning of 2023 and September, the national composite index, which covers all nine United States census divisions, increased by 6.1%. This result is significantly higher than the typical annual increase over the 35 years during which S&P tracked the data.
Craig Lazzara, managing director of S&P Dow Jones Indices, says that the increase in mortgage rates in 2023 contributed to a decrease in the number of homes sold in the United States, and the relative shortage of inventory has become a factor in price support. He predicts continued growth in the cost of housing, noting that this trend may be disrupted by large-scale events affecting the overall economic situation.
In the United States in September, record high prices for real estate for permanent residence were recorded in the following cities: Charlotte, North Carolina, Atlanta, Cleveland, Miami, Detroit, Boston, New York, Chicago, and Tampa, Florida.
In three cities in September, the most significant increase in the cost of housing was recorded year-on-year. In Detroit, this figure increased by 6.7%. In San Diego, the increase in house prices was 6.5%. In New York, this indicator showed a growth of 6.3%.
In some cities, housing prices decreased year-on-year in September. In Las Vegas, this indicator fell by 1.9%. In Phoenix, housing prices decreased by 1.2%. In Portland, Oregon, the decline was 0.7%. In the cities listed, the decrease in prices was the most significant.
Hannah Jones, Senior Economic Research Analyst at Realtor.com, stated that the latest Case-Shiller index demonstrates the impact of high demand for housing and limited supply, as prices continued to rise in early autumn. She said that the September data on this index takes into account the indicators not only for the month of the same name but also for July and August. During the mentioned period, mortgage rates rose to 7.3%. At the beginning of July, this figure was equal to 6.8%.
Higher house prices and mortgage rates caused serious problems with the availability of real estate for buyers in September. Against this background, the level of home sales fell to 13-year lows.
Hannah Jones says that some buyers were looking for alternative offers in the new construction market. This statement is confirmed by the fact that sales of new homes in the United States in September increased by 33.9% year-on-year.
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