Home prices across the United States fell for the third straight month in September, highlighting the stress the Federal Reserve’s fight against inflation has put on the housing market.
The S&P CoreLogic Case-Shiller U.S. 20-city price index fell 1.2 percent in September. The month prior it fell 1.3 percent and in July it fell 0.7 percent.
Home prices peaked in June of this year, according to the S&P CoreLogic 20-city index. The index tracks repeat home sales in 20 of the largest U.S. metropolitan areas. It is widely considered one of the best measures of U.S. home prices.
Despite the three months of declining prices, homes are still up double digits from a year ago. In September, the 20-city average was up 10.4 percent compared with September 2021.
“As has been the case for the past several months, our September 2022 report reflects short-term declines and medium-term deceleration in housing prices across the U.S.,” Craig J. Lazzara, the S&P Dow Jones Indices’ managing director, said in a statement. “Given the continuing prospects for a challenging macroeconomic environment, home prices may well continue to weaken.”
A broader measure of home prices, the U.S. national index, fell by a seasonally adjusted 0.8 percent in September. The narrower 10-city index fell by 1.2 percent compared with the prior month.
“As the Federal Reserve continues to move interest rates higher, mortgage financing continues to be more expensive and housing becomes less affordable. Given the continuing prospects for a challenging macroeconomic environment, home prices may well continue to weaken,” Lazzara said.
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