US Home Prices Rise for Three Consecutive Months Amid High Interest Rates... First Annual Decline in 11 Years

Despite high interest rates, U.S. home prices have shown a rebound by rising for three consecutive months recently. However, compared to the previous year, they have declined for the first time in 11 years.

According to S&P Dow Jones Indices on the 27th (local time), the S&P CoreLogic Case-Shiller Home Price Index for April rose 0.5% compared to the previous month. This index, which measures the average home price trends in major U.S. cities, has continued its upward trend for three consecutive months. The increase was slightly larger than the 0.2% in February and 0.4% in March. The home price indices for 10 major cities and 20 major cities also rose 1.0% and 0.9%, respectively, compared to the previous month.

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The home price index had been declining until early this year due to pressure from rising mortgage rates after peaking in June last year. However, it has since shown signs of recovery. Craig Lazzara, Managing Director at S&P Dow Jones, stated, "The U.S. housing market continued to show strength in April," adding, "Home prices peaked in June last year, declined until January this year, and have since started to recover. The recovery is broad-based."

Experts attribute the rebound in home prices despite still-high mortgage rates to the housing market adapting to the 'new normal' of high interest rates. In particular, homeowners who took out loans when rates were low are reluctant to sell, further exacerbating the shortage of homes for sale.

However, compared to a year ago, home prices in April recorded their first decline since April 2012. The S&P CoreLogic Case-Shiller Home Price Index fell 0.2% year-over-year. The indices for the top 10 and top 20 cities also dropped 1.2% and 1.7%, respectively, compared to the same month last year. The rate of decline also increased compared to March.

This content was produced with the assistance of AI translation services.