U.S. Home-Price Growth Lost Pace in April

By Ed Frankl

U.S. annual home-price growth slowed a little in April, after the speed of price rises in the early part of 2024 cooled, as the likelihood of higher interest rates for longer strengthened.

The S&P CoreLogic Case-Shiller National Home Price Index, which measures home prices across the country, rose 6.3% from a year earlier in April, down from 6.5% the prior month, according to data published Tuesday.

This year "is closely tracking the strong start observed last year, where March and April posted the largest rise seen prior to a slowdown in the summer and fall," said Brian D. Luke, head of commodities, real & digital assets at S&P Dow Jones Indices.

Earlier this year, higher-than-expected inflation readings pushed out some expectations for Federal Reserve rate cuts ahead. At its last meeting in June, Fed Chair Jerome Powell gave few clues about upcoming loosening of monetary policy.

Nevertheless, the index saw a jump of at least 1% on month over its previous all-time high for the second-straight month, according to the data.

San Diego once again posted the highest on-year increase in house prices, with a 10.3% annual gain, followed by New York and Chicago. Portland posted the weakest growth, at 1.7%.

The Case-Shiller 10-city index rose 8.0% on year in April, following an 8.3% increase in March. Meanwhile, the 20-city index rose 7.2%, ticking down from the 7.5% in the prior month. Economists surveyed by The Wall Street Journal expected the 20-city index to rise 7.0%.

The Northeast remained the best-performing regional market, with more than a year since the top region came from the South or West, Luke added.

The Case-Shiller index, which measures repeat-sales data, reports on a two-month delay and reflects a three-month moving average. Homes usually go under contract a month or two before they close.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

June 25, 2024 09:20 ET (13:20 GMT)

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