Housing-prices lost ground in Phoenix and across the country on a month-over-month basis in September, as high prices and high mortgage rates continued to dampen homebuyer purchasing power.
Phoenix prices fell 2.2% month over month but rose 12.6% year over year, while nationally they slid 1% month over month and rose 10.6% year over year, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.
“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.,” S&P DJI Managing Director Craig Lazzara said in a press release. “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.”
The 10-city composite index rose 9.7% on a yearly basis and fell 1.4% on a monthly basis, while the 20-city composite rose 10.4% annually and 1.5% monthly.
“Prospective homebuyers face increasingly higher ownership costs, while potential sellers contend with lower price expectations,” CoreLogic deputy chief economist Selma Hepp said. “Projections of continued home price cooling in 2023 have exacerbated the substantial decline in housing market activity. Nevertheless, while home price deceleration is likely to continue into next year, prolonged seller reluctance and forecasts of only a brief recession may keep annual appreciation flat throughout 2023, with only some regions of the country seeing price declines.”