Economic Data and Growth

In March, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index recorded a 0.7% annual gain, down slightly from a 0.8% rise in February. The 10-City Composite increased 1.4%, down from 1.5% the previous month, while the 20-City Composite rose 0.8% year-over-year, down from 0.9% in February. Chicago again posted the highest annual gain at 6.1%, followed by New York at 4.0% and Cleveland at 3.0%. Meanwhile, Seattle posted the lowest annual return, with prices falling 2.5%.

On a month-over-month basis, the U.S. National Index advanced 0.7% before seasonal adjustment. At the same time, the 10-City and 20-City Composites both stepped up, rising 1.2% and 1.0%, respectively. After seasonal adjustment, the U.S. National Index and 20-City composite both ticked down 0.2%, while the 10-City Composite edged down less than 0.1%. The Northeast and Midwest continue to outperform other regions, but the housing market overall appears to be at a standstill, with price growth barely positive. Meanwhile, in addition to Seattle, Denver (down 2.0%), Tampa (down 1.9%), Dallas (down 1.7%), Phoenix (down 1.6%), Los Angeles (down 1.6%) and Washington, D.C. (down 0.1%) exhibited declines in March.

Despite a slight lift in prices that generally occurs in the spring season, more than half of the 20 major U.S. housing markets recorded year-over-year price declines in March. Climbing mortgage rates continue to hurt affordability and stunt demand. Overall, increases in U.S. home values remained below inflation for the 10th consecutive month, a trend that shows little signs of reversing.