The United States witnessed a new peak in home prices in August, marking seven consecutive months of increases.
According to seasonally adjusted data from S&P CoreLogic Case-Shiller, a national measure of prices rose by 0.9% in August compared to July. Cities that hit all-time price highs include New York, Boston, Miami, and Atlanta.
The rise in borrowing costs has impacted potential buyers and restricted the number of homes available for sale. Homeowners have become hesitant to list their properties and give up lower interest rates. The limited inventory has contributed to the price surge.
Craig Lazzara, Managing Director at S&P Dow Jones Indices, noted, "The year’s increase in mortgage rates has surely suppressed housing demand, but after years of very low rates, it seems to have suppressed supply even more."
The shortage of available properties has pushed home prices up by 5.8% year-to-date, well above the median annual increase seen over the past three decades. Prices nationally climbed 2.6% on a year-over-year basis, compared to a 1% gain in July.
Recent data from Redfin Corp. indicates a slight easing of the inventory crunch. In the four weeks through October 22, new listings increased by 0.3% compared to the previous year, marking the first rise since July 2022.
However, buyers face rising mortgage rates, which have continued to climb since August. Some measures are now hovering near 8% for a 30-year fixed loan.
Selma Hepp, Chief Economist at CoreLogic Inc., noted, "Higher mortgage rates and seasonal trends will slow further monthly gains –— with some possible declines in winter months."
According to seasonally adjusted data from S&P CoreLogic Case-Shiller, a national measure of prices rose by 0.9% in August compared to July. Cities that hit all-time price highs include New York, Boston, Miami, and Atlanta.
The rise in borrowing costs has impacted potential buyers and restricted the number of homes available for sale. Homeowners have become hesitant to list their properties and give up lower interest rates. The limited inventory has contributed to the price surge.
Craig Lazzara, Managing Director at S&P Dow Jones Indices, noted, "The year’s increase in mortgage rates has surely suppressed housing demand, but after years of very low rates, it seems to have suppressed supply even more."
The shortage of available properties has pushed home prices up by 5.8% year-to-date, well above the median annual increase seen over the past three decades. Prices nationally climbed 2.6% on a year-over-year basis, compared to a 1% gain in July.
Recent data from Redfin Corp. indicates a slight easing of the inventory crunch. In the four weeks through October 22, new listings increased by 0.3% compared to the previous year, marking the first rise since July 2022.
However, buyers face rising mortgage rates, which have continued to climb since August. Some measures are now hovering near 8% for a 30-year fixed loan.
Selma Hepp, Chief Economist at CoreLogic Inc., noted, "Higher mortgage rates and seasonal trends will slow further monthly gains –— with some possible declines in winter months."
