US Home Prices Defy Odds: U.S. Home Prices Reach New Heights in September Amidst Rising Mortgage Rates and Limited Inventory
In September, U.S. home prices hit a record high for the eighth consecutive month, defying mortgage rates above 7%. The housing market’s persistent surge, driven by historic low inventory, saw prices rise by 0.7% from the previous month, with a 3.9% increase from September 2022.
The national composite index, covering all nine census divisions, showed a year-to-date rise of 6.1%, surpassing typical annual increases. While higher mortgage rates affected sales, limited inventory remained a stabilizing factor, according to Craig Lazzara, Managing Director at S&P Dow Jones Indices.
All 20 cities in a separate index experienced price increases, with several cities reaching all-time highs. Detroit led in year-over-year growth, followed by San Diego and New York. The Northeast and Midwest exhibited the strongest price increases, emphasizing the ongoing impact of high demand and restricted supply on the housing market.
Hannah Jones, Senior Economic Research Analyst at Realtor.com, noted the role of limited inventory and increased mortgage rates, leading to challenges in affordability and a surge in new home sales, accounting for nearly one-third of available inventory in September.
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