Economic Data and Growth

In January, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index recorded a 0.9% annual gain, down from the 1.1% gain in December. The 10-City Composite increased 1.7%, down from 2.0% the previous month, while the 20-City Composite rose 1.2% year-over-year, down from 1.4% in December. Among the 20 cities, New York posted the highest annual gain at 4.9%, followed by Chicago at 4.6% and Cleveland at 3.6%. Meanwhile, Tampa again posted the lowest annual return, with prices falling 2.5%.

On a month-over-month basis, the U.S. National Index and 20-City Composite both declined 0.1% before seasonal adjustment. At the same time, the 10-City Composite ticked down 0.03%. After seasonal adjustment, the U.S. National Index, 10-City and 20-City Composites all rose 0.2%. The Northeast and Midwest continued to outperform other regions as January continued the trend of weak price growth. Meanwhile, in addition to Tampa, the Sun Belt market kept declining, including Denver (down 2.1%), Phoenix (down 1.6%), Dallas (down 1.5%) and Portland (down 1.0%).

Affordability concerns showed no sign of easing as the market appeared to be neither recovering nor correcting. Before seasonal adjustment, 14 of the 20 major metro areas saw price declines in January. In areas where prices continued to rise, appreciation has slowed notably. Overall, home price growth trailed inflation, reducing home values over the past year.