Will the housing market's rise continue?
US home prices continued their upward trend in November 2024, with the S&P CoreLogic Case-Shiller US National Home Price NSA Index reporting a 3.8% annual gain. The latest data, released by S&P Dow Jones Indices, marks a slight increase from the 3.6% year-over-year rise recorded in October.
The 10-city Composite, which tracks major metropolitan areas, maintained a 4.9% year-over-year increase, while the 20-city Composite rose 4.3%, up from 4.2% the previous month.
Among the 20 tracked cities, New York led with a 7.3% annual price increase, followed by Chicago at 6.2% and Washington at 5.9%. In contrast, Tampa was the only market to see a decline, posting a 0.4% drop in home prices.
Market trends
Home prices showed slight month-over-month declines in November. The national index fell by 0.1% on a non-seasonally adjusted basis, mirroring declines in the 20-city composite (-0.1%) and the 10-city composite (unchanged). After seasonal adjustments, however, all three indices posted a 0.4% increase from October.
Brian D. Luke, head of commodities, real and digital assets at S&P DJI, noted that while home prices in some areas remain above historical trends, national growth is lagging long-term averages.
“The Northeast was the fastest-growing region, with an average 6.1% annual gain,” Luke said. “However, markets out west and in once red-hot Florida are trending well below average growth. Tampa’s decline is the first annual drop for any market in over a year. Returns for the Tampa market and entire Southern region rank in the bottom quartile of historical annual gains, with data going back to 1988.”
Despite these trends, the US National Index hit its 18th consecutive seasonally adjusted all-time high, Luke noted. “With the exception of Tampa, all markets rose monthly with seasonal adjustment,” he said. “With New York leading the nation for the seventh consecutive month and US banks reporting strong Q4 earnings, this could set the Big Apple up as we close out the year.”
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