The Case-Shiller Home Price Index shows that New York home prices declined by 0.4% in November 2013, while nationally the 10-city composite index declined by 0.1%. New York’s price decrease was the first since March, while the decline in the national index was the first in a year. Prices were still up 6% in New York since last year compared to an increase of 13.8% nationally. It is common for home prices to go down in the winter, as occurred in 9 of the 20 cities measured in the index.
According to the press release issued with the latest figures:
“Home prices continue to rise despite last May’s jump in mortgage interest rates. Mortgage applications for purchase were up in recent weeks confirming home builders’ optimism shown by the NAHB survey. Combined with low inflation — 1.5% in 2013 – home owners are enjoying real appreciation and rising equity values. While housing will make further contributions to the economy in 2014, the pace of price gains is likely to slow during the year.”
When December figures are released next month we will have a complete picture of the evolution of housing prices for 2013. It will be interesting to observe whether S&P’s prediction of slower price increases in 2014 will affect all markets similarly or whether places like New York that have seen more moderate growth will be able to maintain that pace and catch up to other markets.