Home prices in the U.S. saw a 4.1% annual gain in January, up from a 4.0% annual increase in the prior month, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index.
Though the year-over-year growth rate of the national Case-Shiller index has lagged since the beginning of 2024, January’s reading still marks the 20th consecutive month that the index of U.S. home prices has hit an all-time high.
“Home price growth continued to moderate in January, reflecting a clear two-part story across the past year,” said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices, in a press release. “The national composite index posted a 4.1% annual gain, with the bulk of appreciation — 4.8% — occurring in the first half of the year. Prices declined 0.7% in the second half, as high mortgage rates and affordability constraints weighed on buyer demand and market activity.”
The Case-Shiller index tracks the prices of repeat sales of single-family U.S. homes and does not include new-build properties. Besides the national index, S&P Dow Jones Indices also publishes composite indexes that track home prices in the 10 and 20 largest U.S. metropolitan areas.
In January, the 10-city composite index posted an annual uptick of 5.3%, up from a 5.2% gain in December. The 20-city composite saw an annual 4.7% increase, up from 4.5% the previous month.
New York City had a 7.7% year-over-year increase in January, the highest among the top 20 metros. Chicago was next at 7.5%, followed by Boston at 6.6%. The Tampa Bay area was the only market in the 20-metro index that saw a year-over-year loss in January, declining 1.5%.
Godec noted in the press release that both buyers and sellers were likely cautious during the second half of 2024 due to high mortgage rates and affordability concerns.
“Despite near-term softness, the S&P CoreLogic Case-Shiller index remains historically elevated, and long-term homeowners have continued to build equity,” Godec said. “The current cycle reinforces the value of real estate as a long-duration asset, but also highlights how sensitive home prices are to changes in financing conditions and buyer affordability.”
