Home prices in all nine United States census divisions saw a growth of 5.8% in December on an annual basis, the S&P CoreLogic Case-Shiller reported on Tuesday.
The 10-City Composite annual rise was at 4.4% in December marking a decrease of 1.9 percentage points compared to November's reading. In addition, the 20-City Composite growth came in at 4.6% year over year, dropping from 6.8% recorded a month prior. All cities reported that price growth decelerated. Miami, Tampa, and Atlanta achieved the highest year-over-year gains.
"The prospect of stable, or higher, interest rates means that mortgage financing remains a headwind for home prices, while economic weakness, including the possibility of a recession, may also constrain potential buyers. Given these prospects for a challenging macroeconomic environment, home prices may well continue to weaken," Managing Director at S&P DJI Craig J. Lazzara explained.