Annual national home price gains inch down

Staggering growth in the national home price index is on the decline, according to the latest S&P CoreLogic Case-Shiller Index. November surpassed 2021 rates with an 18.8 percent annual gain, though did represent a decline from 19 percent the month prior.

The report, released Jan. 25, showed house price appreciation has slowed for three consecutive months and annual growth has retreated from records set in August, but November’s pace still easily surpassed any rate reported prior to 2021.

Buyers who exited the competitive market last summer returned in the fall to find that sellers are exerting less. Homes spent about twice as many days on the market in December than in June, giving many shoppers more time to evaluate their choices and perhaps negotiate the price before submitting a final offer.

However, they are also finding fewer homes to choose from as the number of houses listed for sale dropped to a record low last month. The latest reports indicate that house price appreciation bumped up in December, encouraging more supply in the short run.

Rising mortgage rates, reduced fiscal support from the federal government, and leveling job growth will ease home sales growth and appreciation by the end of this year.