[서울=뉴시스]Reporter Lee Jae-joon = In January 2023, the housing price index of 20 major cities in the United States rose 3.8% compared to the same month last year, CNBC and the Associated Press reported on the 28th (local time).
According to the media, S&P Dow Jones Indices, a global index specialist, announced on the same day that the S&P CoreLogic Case-Shiller Housing Price Index slowed in January from a 5.8% increase in the previous month.
It has been slowing for 9 months in a row. With interest rates on mortgages falling, there is a possibility that buying will return to the housing market. Seasonally adjusted, it fell 0.2% from the previous month.
The Economist pointed out, “Given the market reaction since the Federal Open Market Committee (FOMC) in March, if mortgage rates remain sound, there is a possibility that the rate of increase in house prices will rise unexpectedly amid supply shortages.”
However, the economist diagnosed that if consumer sentiment is hit again by the ongoing banking crisis and the volatility of mortgage rates, it could throw cold water on spring home buying.
This is because banks can suppress mortgage loans and loans to construction companies due to business deterioration caused by financial system instability. Lending standards may become stricter and borrowing costs may rise further.
By region, the Southeast region maintained a year-on-year growth rate. Double-digit increases were seen in Miami and Tampa, Florida.
Prices also rose solidly in Atlanta, Georgia, and Charlotte, North Carolina. During the COVID-19 pandemic, populations are pouring into the South as businesses offer flexibility to work anywhere.
On the other hand, prices continued to decline in the West. It fell in San Diego, Portland, San Francisco and Seattle.
Meanwhile, the January housing price index announced by the Federal Housing Finance Agency (FHFA) on the 28th rose 5.3 percent from the same month of the previous year as a seasonally adjusted value.
It slowed from 6.7% in December, and since March 2023, it has contracted consecutively. The rate of increase is the lowest since May 2020. Price pressure is weakening due to sluggish demand.
Compared to the previous month, it increased by 0.2%. January fell 0.1%.
FHFA analyzed that “January showed a slight decline, but the same pattern has been maintained over the past few months.”
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