Home Prices Slide for Fourth Month in October

Home prices are down 3% nationwide since peaking in June as mortgage rates jump

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U.S. home prices fell for a fourth month in October as rising mortgage rates weakened demand.

Key Takeaways

  • U.S. home prices fell for a fourth month in October, sliding 0.5%, according to the Case-Shiller Index.
  • Average home prices in West Coast cities are dropping fastest.
  • Nationwide, house prices are still up about 9% year-over-year.
  • Mortgage rates have increased, weakening demand.

The S&P CoreLogic Case-Shiller National Home Price NSA Index, which gauges the purchase price of houses in major cities nationwide and reports on a two-month delay, dropped 0.5% in October from September, the fourth monthly decline for an index that's down 3% from a peak in June.

Average home prices in all 20 cities included in the Case-Shiller Index dropped, led by Las Vegas. Still, prices are up almost 9% year-over-year, with some regions experiencing much faster growth. Prices in southeastern metropolitan areas including Miami, Tampa, and Charlotte climbed as much as 21% in that time.

The index has slid after a series of Federal Reserve interest rate hikes that have more than doubled the average rate on a 30-year fixed-rate mortgage to 6.27%. Higher rates coupled with inflation and a broader slowdown after the pandemic boom have softened demand. The U.S. Federal Housing Finance Agency says that helps explain two straight months of near-zero appreciation on home prices.

Cities where home prices dropped the most in October from September include:

  • Las Vegas: -1.8%
  • San Francisco: -1.7%
  • Phoenix: -1.6%
  • Dallas: -1.3%
  • Denver: -1.1%

And those with the smallest one-year increases in prices through October include:

  • San Francisco: 0.6%
  • Seattle: 4.5%
  • Portland: 5.4%
  • Minneapolis: 5.9%
  • Washington, D.C.: 6.0%
Article Sources
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  1. Wall Street Journal. "Home Prices Fell in October for Fourth Straight Month."

  2. MSN.com. "S&P CoreLogic Case-Shiller home price index falls less than expected in October."

  3. S&P Dow Jones Indices. "S&P Corelogic Case-Shiller Index Continued to Decline In October."

  4. Seeking Alpha. "FHFA house price index flat in October."


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