After rising 5.6% in December, U.S. home prices posted a gain of just 3.8% in January, marking the seventh straight month of declines, according to CNBC. Mortgage rates are the key driver of a home price cooldown, and as the Federal Reserve continues its fight against inflation, rates are expected to remain elevated in the near term.
Year-over-year prices were lowest in San Francisco (-7.6%), Seattle (-5.1%), and Portland, Ore. (-0.5%), while Miami, Tampa, Fla., and Atlanta saw the largest annual gains of 13.8%, 10.5%, and 8.4%, respectively.
“More expensive, less available borrowing, especially with an unclear economic outlook, is likely to continue to limit buyer demand. Though home sales are expected to rebound in line with seasonal trends, this spring’s sales pace is expected to remain lower than last year, as uncertainty and high costs limit activity,” said Hannah Jones, economic data analyst for Realtor.com.
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