U.S. home prices slip for 4th month, California metros has 3 of the biggest drops

The U.S. housing market continued to sag for the fourth-straight month in October – with California metro areas having three of the nation’s biggest drops.

Higher mortgage rates and concerns over the economy rattled buyers and sellers translated to the widely watched S&P CoreLogic Case-Shiller price index for 20 key metro areas fell 0.8% from September, the fourth consecutive monthly decline. The 20-city Case-Shiller index, which is a three-month moving average of activity, is off 4.6% since May but is still up 9.2% over 12 months.

Here’s how prices in the the 20 metros fared in the past four months, ranked by the size of their percentage drop …

San Francisco: Off 13% vs. the pricing peak but up 0.6% over 12 months.

Seattle: Off 12.2% vs. peak but up 4.5% over 12 months.

San Diego: Off 8.5% vs. peak but up 7.5% over 12 months.

Denver: Off 6.7% vs. peak but up 7.9% over 12 months.

Los Angeles-Orange County: Off 6.6% vs. peak but up 6.6% over 12 months.

Phoenix: Off 5.9% vs. peak but up 9.6% over 12 months.

Dallas: Off 5.6% vs. peak but up 13.5% over 12 months.

Las Vegas: Off 5.4% vs. peak but up 9.4% over 12 months.

Portland: Off 5.2% vs. peak but up 5.4% over 12 months.

Boston: Off 4.0% vs. peak but up 7.6% over 12 months.

Washington: Off 3.6% vs. peak but up 6.0% over 12 months.

Detroit: Off 2.9% vs. peak but up 7.0% over 12 months.

Minneapolis: Off 2.7% vs. peak but up 5.9% over 12 months.

Charlotte: Off 2.4% vs. peak but up 15.0% over 12 months.

Miami: Off 2.1% vs. peak but up 21.0% over 12 months.

Tampa: Off 2.1% vs. peak but up 20.5% over 12 months.

Atlanta: Off 1.9% vs. peak but up 14.9% over 12 months.

Cleveland: Off 1.8% vs. peak but up 8.7% over 12 months.

Chicago: Off 1.6% vs. peak but up 8.9% over 12 months.

New York: Off 1.5% vs. peak but up 9.3% over 12 months.

The market began downshifting earlier this year as the Federal Reserve started hiking its benchmark interest rate, with the goal of easing high inflation that’s been driven in part by skyrocketing housing costs.

Rates for 30-year, fixed mortgages reached 7.08% in October — and again in November — though they have since retreated, Freddie Mac data show. With borrowing costs roughly double where they were at the start of the year, and inflation leaving less savings to put toward a down payment, homebuyers have pulled back. Sellers are also reluctant to list their properties, yet houses that are on the market are lingering and getting discounted as demand slumps.

“As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be a headwind for home prices,” Craig Lazzara, managing director at S&P Dow Jones Indices, said in a statement Tuesday. “Given the continuing prospects for a challenging macroeconomic environment, prices may well continue to weaken.”

Bloomberg and the Southern California News Group’s Jonathan Lansner contributed to this report.


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