New data show that home prices continue to increase across the U.S. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, released by S&P Dow Jones Indices, reported a 20.4% annual gain in April, down from 20.6% in the previous month. The index covers all nine U.S. census divisions.
The 10-City Composite annual increase was 19.7%, up from 19.5% in the previous month. The 20-City Composite posted a 21.2% year-over-year gain, up from 21.1% in the previous month.
Tampa, Miami, and Phoenix reported the highest year-over-year gains among the 20 cities in April. Tampa was out front with a 35.8% year-over-year price increase, followed by Miami with a 33.3% increase, and Phoenix with a 31.3% increase. Nine of the 20 cities reported higher price increases in the year ending April 2022 versus the year ending March 2022.
Prices were strongest in the South (+30.6%) and Southeast (+30.5%), with even the comparatively weak Midwest (+13.8%) and Northeast (+14.0%) showing double-digit gains, according to an analysis by Craig J. Lazzara, managing director at S&P DJI.
Before seasonal adjustment, the U.S. National Index posted a 2.1% month-over-month increase in April, while the 10-City and 20-City Composites posted increases of 2.2% and 2.3%, respectively. After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 1.5%, and the 10-City and 20-City Composites both posted increases of 1.8%. In April, all 20 cities reported increases before and after seasonal adjustments, according to the data.
“April 2022 showed initial (although inconsistent) signs of a deceleration in the growth rate of U.S. home prices,” says Lazzara. “We noted last month that mortgage financing has become more expensive as the Federal Reserve ratchets up interest rates, a process that had only just begun when April data were gathered. A more-challenging macroeconomic environment may not support extraordinary home price growth for much longer.”