U.S. Home Price Appreciation Contracted Swiftly in September

Despite slowdown, Miami led the nation with highest year-over-year home price gains

The latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported this week a 10.6% annual gain in September 2022, down from 12.9% in the previous month.

The 10-City Composite annual increase came in at 9.7%, down from 12.1% in the previous month. The 20-City Composite posted a 10.4% year-over-year gain, down from 13.1% in the previous month.

Miami, Tampa, and Charlotte reported the highest year-over-year gains among the 20 cities in September. Miami led the way with a 24.6% year-over-year price increase, followed by Tampa in second with a 23.8% increase, and Charlotte in third with a 17.8% increase. All 20 cities reported lower price increases in the year ending September 2022 versus the year ending August 2022.

CoreLogic’s Deputy Chief Economist Selma Hepp tells The World Property Journal, “In September, the CoreLogic S&P Case-Shiller Index gains continued to quickly approach single digits, posting a 10.6% year-over-year increase — marking the sixth straight month of decelerating annual home price growth and the slowest since December 2020. Compared to the 2022 spring peak, home prices are down 3% nationally, with over 10% declines in San Francisco and Seattle. Historically, home prices have increased by about 1% from spring to September.”

Hepp further commented, “Housing markets continue to face a loss of consumer confidence and the ongoing standoff between buyers and sellers. Potential buyers are held back by the rapidly rising cost of homeownership and fears of price declines. At the same time, potential sellers continue to contend with the lock-in effect of notably lower mortgage rates than the current market rates, which financially disincentivizes them from moving. For the remainder of the year, housing market activity will continue to be depressed, both due to seasonality and fall’s vast surge in mortgage rates, which will keep the home price growth rate moving closer to low single digits.”