Case Shiller Home Prices: Fifth Month of Declines

Bottom Line:  Home prices fell for the fifth consecutive month in November, dropping slightly less than expected. Declines were most prominent in the West, from Phoenix west and north to Seattle. Year-over-year gains were down to the low single-digits in most of the once red-hot markets, with Seattle the first market to dip into negative year-on-year readings. Only Detroit and Chicago area homes, among the slowest gainers during the boom, saw slight gains. Overall, home price declines continued well into the 4th Quarter, but the pace of declines was decelerating modestly. Expect the market to continue to rebalance at modestly lower prices amid continued higher mortgage rates, but the losses should slow and stabilize at some point in 2023 as supply remains tight and regular demographically-led demand continues.