Key Takeaways
- The S&P CoreLogic Case-Shiller price index showed Tuesday that U.S. home prices rose 3.9% annually in December.
- Rising house prices could increase a seller’s profits but it also pressures already strained buyers to pay more.
- But prices weren’t rising everywhere, with the data showing prices moved lower in some areas that were once real estate hotspots.
The average U.S. home price across the country rose in December, but the growth was not even as some real estate hotspots cooled off.
The S&P CoreLogic Case-Shiller home price index showed that U.S. home prices rose 3.9% in the 12 months ending in December, higher compared to the prior month’s reading. The uptick comes after housing price increases slowed somewhat in the second half of 2024.
Home prices have risen since the pandemic, boosting sellers’ profits and straining buyers’ already stretched budgets. However, in some noteworthy locations, prices have begun dropping.
San Francisco housing prices were 11% lower than their post-pandemic peak in May 2022, while San Diego and Tampa saw their housing prices drop 2.9% and 2.7%, respectively, in the second half of 2024.
“Home prices continue to edge up, and while certain U.S. markets are recording declines, the clear trend for this year is home price inflation due to the dearth of homes on the market,” said Robert Frick, corporate economist at Navy Federal Credit Union. “When factoring in high mortgage rates, we’re seeing home affordability pushed further out-of-reach for most American families.”
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