US Home Prices Rose For the 7th Straight Month In September... Led By Detroit!

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by Tyler Durden
Tuesday, Nov 28, 2023 - 02:09 PM

Home prices in America's 20 largest cities rose for the 7th straight month in September (the latest data released by S&P Global Case-Shiller today), up 0.67% MoM (slightly worse than the +0.8% MoM expected).

That pushed the YoY rise in prices up 3.92% - the fastest pace since Dec '22 - but as the chart shows the MoM gains are slowing rapidly.

Source: Bloomberg

"On a year-over-year basis, the three best-performing metropolitan areas in September were Detroit (+6.7%), San Diego (+6.5%), and New York (+6.3%)," according to Craig J. Lazzara, Managing Director at S&P DJI.

"We’ve commented before on the breadth of the housing market’s strength, which continued to be impressive. On a seasonally adjusted basis, all 20 cities showed price increases in September"

But, judging by the resumption of the rise of mortgage rates since the Case-Shiller data was created, we would expect prices to also resume their decline...

Source: Bloomberg

Inventory is increasing (as homebuilders dump new homes on to the market), but existing home-buyers and -sellers are stuck still (affordability for the former and the mortgage cost gap for the latter), and - despite the market's hopes - The Fed isn't cutting rates any time soon (unless the economy utterly collapses). Be careful what you wish for...