The pace of United States home-price growth ticked slightly higher in April, S&P Dow Jones Indices said, adding that price changes varied widely by region, with the Midwest and Northeast showing moderate growth and the Sunbelt and West seeing declines.
The S&P Cotality Case-Shiller U.S. National Home Price NSA Index rose 0.8% year over year in April, compared to a 0.7% gain in March. Month over month, the index also rose 0.8%.
In Boston, home prices popped 2.11% year over year and 1.16% month over month in April.
S&P Dow Jones noted that inflation outpaced national home-price appreciation for the 11th month in a row, with 3.8% inflation outpacing the 0.8% price increase by three percentage points.
“The affordability pinch remains a key headwind,” said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices. “After dipping below 6% earlier this year, 30-year mortgage rates climbed back to 6.3% in April, keeping financing costs elevated. In this higher-rate environment, home price growth remains constrained, with housing largely treading water in nominal terms and falling in real terms.”
“Geographic dispersion remains pronounced,” Godec said, noting that Chicago posted the largest annual gain, at 6.5%, which is almost 9% higher than Seattle’s 2.3% drop, the steepest of the metros surveyed.
On a monthly basis, Chicago prices rose 1.55%, and Seattle prices gained 1.25%.