Home prices hit an all-time high in December despite rising mortgage rates

Home prices rose for the 11th c💫onsecutive month in December, as ♔ remained painfully low.

Prices increased 5.5% nationally in December when compared with the prꦓevious year, the S&P CoreLogic Case-Shiller index showed on Tuesday.

That is up from the 5% annual increase recorded the prior month.

On a monthly basis, ♈prices fell 0.4%, according to the in❀dex.

The 10-city composite, which encompassed Los Angeles, Miami and New York, rose 7% annually, compared ༺with an increase of 6.3% in November.

The 20-city composite, which also tracked housing prices in Dallas and Seattle, posted an annual gain of 6.1%,꧅ which also marks an increase from the 5.🏅4% figure recorded the previous month.

There was a major discrepancy in the price gains in the 20 cities: San Diego repo♒rted an 8.8% annual gain in December, followed by Los Angeles and Detroit, eac🍎h with an 8.3% increase.

Portland, Oregon, saw 🍸the smallest gain in December, with home prices climbing just 0.3% from the priorꦅ year.

However, it marked the first t✅ime in 2023 that all 20 cities reported a year-over-yജear gain.

“While we are not experiencing the double-digit gains seen in the previous two years, above-trend growth should be well received considering the rising costs of financing home mortgages,” said Brian Luke, head of commodities, real and digital assets at S&P DJI, in a release.

The Case-Shiller index reports with a two-month delay, m༺eaning it may not capture the latest ongoings in the mar💎ket. 

The interest-rate-sensitive housing market entered a deep freeze last year in the wake of the Federal Reserve’s aggressive interest-rate hike campaign.

However, prices have quickly recovered as buyers adjust to higher mortgage rates and compete for a limited supply of homes. 

The problem is unlikely ꦦto be resolved a💟nytime soon.

With mortgage rate♒s hovering nꦿear the highest level in two decades, sellers who locked in a low rate before the pandemic began have been reluctant to sell, leaving few options for eager would-be buyers.

Available home supply is still down a stunning 34.3% from the typical amount before the ꩲ;COVID-19 pandemic began in early 2020, despite a recent drop in mortgage rates, according to a separate report published by Realtor.com.