The S&P CoreLogic Case-Shiller Indices, a key measure of U.S. home prices, released their latest data for March 2023. The report reveals a sustained rebound in housing prices, with all 20 major metro markets reporting month-over-month price increases.
In March, the U.S. National Index saw a 1.3% unadjusted month-over-month rise, while the 10-City and 20-City Composites experienced increases of 1.6% and 1.5% respectively. After accounting for seasonal adjustments, the U.S. National Index recorded a 0.4% month-over-month increase, while the 10-City Composite gained 0.6% and the 20-City Composites posted a 0.5% increase.
Craig J. Lazzara, Managing Director at S&P DJI, noted that the modest price increases observed in the previous month accelerated in March 2023. The National Composite rose by 1.3% and now stands just 3.6% below its peak in June 2022. Similarly, the 10-City and 20-City Composites saw gains of 1.6% and 1.5% respectively. On a trailing 12-month basis, the National Composite is only 0.7% higher compared to March 2022, while the 10-City and 20-City Composites show slight year-over-year declines.
At a granular level, all 20 cities reported price increases in March, with accelerated gains compared to February. Miami remained the best-performing city with a year-over-year gain of 7.7%, followed closely by Tampa (+4.8%) and Charlotte (+4.7%). The Western cities, such as Seattle (-12.4%) and San Francisco (-11.2%), exhibited weaker prices, while the Southeast region (+5.4%) remained the strongest, and the West (-6.2%) continued to be the weakest.
Although two months of rising prices do not guarantee a full recovery, the March results suggest that the decline in home prices since June 2022 may have halted. However, challenges posed by current mortgage rates and the possibility of economic weakness are expected to hinder housing prices in the coming months.
