US house price growth eases in January

US house price growth eased in January, according to the latest S&P/Case-Shiller national home price index.

The 20-city index posted a 2.5% year-over-year gain, down from 4.6% in December.

Miami, Tampa, and Atlanta saw the highest year-over-year gains among the 20 cities in January. Miami led the way with a 13.8% increase, followed by Tampa with a 10.5% jump, and Atlanta with an 8.4% increase.

All 20 cities reported lower prices in the year ending January 2023 versus the year ending December 2022.

Meanwhile, the National Home Price NSA index, which covers all nine US census divisions, rose 3.8% on an annual basis in January, down from 5.6% the month before.

Craig J. Lazzara, managing director at S&P DJI, said: "2023 began as 2022 had ended, with US home prices falling for the seventh consecutive month.

"January’s market weakness was broadly based. Before seasonal adjustment, 19 cities registered a decline; the seasonally adjusted picture is a bit brighter, with only 15 cities declining. With or without seasonal adjustment, most cities’ January declines were less severe than their December counterparts."

He noted that financial news this month has been dominated by ructions in the commercial banking industry, as some institutions’ risk management functions proved unequal to the rising level of interest rates.

"Despite this, the Federal Reserve remains focused on its inflation-reduction targets, which suggest that rates may remain elevated in the near-term. Mortgage financing and the prospect of economic weakness are therefore likely to remain a headwind for housing prices for at least the next several months."