US annual home price growth decelerated in March, with more than half of the 20 major markets logging decreases, S&P Global (SPGI) division S&P Dow Jones Indices said Tuesday.
The national S&P Cotality Case-Shiller Index rose 0.7% year over year in March without seasonal adjustments, down from a 0.8% increase the month prior. The 10- and 20-city composites increased 1.4% and 0.8%, respectively, in March. The measures slowed down from February's growth rates of 1.5% and 0.9%, respectively, according to the report.
"More than half of the 20 major US housing markets recorded year-over-year price declines in March, reflecting a broadening and deepening housing slowdown," said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices. "With consumer inflation accelerating to roughly 3.3% in March, US home values have now fallen in real terms for the 10th consecutive month, underscoring an ongoing erosion of inflation-adjusted housing wealth."
Markets in the Northeast and Midwest are sustaining "modest" growth in prices, while much of the Sun Belt and Western regions continue to see decreases, Godec said.
Among the 20 cities, prices in Seattle fell 2.5% year over year in March, the steepest decline. Chicago logged the highest annual gain of 6.1%, followed by New York and Cleveland, the data showed.
Sequentially, pre-seasonally adjusted national home prices increased 0.7% in March, compared with a 0.3% rise the month prior. The 10-city composite index was up 1.2%, while the 20-city composite increased 1%, the data showed. In February, the 10- and 20-city composites advanced 0.6% and 0.4%, respectively, according to the report.
"Monthly price movements offered a seasonal spring lift, but little underlying momentum," Godec said. "The 30-year fixed (mortgage) rate dipped below 6% in late February, but rebounded to roughly 6.4% by the end of March, re-intensifying the affordability squeeze on buyers and potentially further damping home sales and price growth."
Separately, the Federal Housing Finance Agency said US home prices increased 0.1% sequentially in March. In the first quarter, prices rose 0.5% from the linking quarter and 1.7% annually, according to the report.
Price: $413.10, Change: $-4.51, Percent Change: -1.08%
