U.S. Single-Family House Prices Update

Date: November 2023
Source: Reuters

U.S. single-family house prices experienced a moderate increase in November, driven by higher mortgage rates that are curbing demand and boosting housing supply on the market.

House prices rose by 0.3% on a month-on-month basis, following an upwardly revised increase of 0.5% in October (initially reported as 0.4%).

In the 12 months through November, prices increased by 4.2%, compared to an unrevised 4.5% gain in October.

Anju Vajja, deputy director for the FHFA’s Division of Research and Statistics, noted: “Annual house price gains continued to moderate in November, with all nine Census divisions showing a slower pace of growth than a year ago. The slowdown in price growth is likely due to higher mortgage rates contributing to cooling demand.”

Rising supply is also affecting the pace of house price appreciation, with new housing inventory reaching a 17-year high and the availability of previously owned homes improving significantly.

All Census regions reported annual house price gains, with New England and the Middle Atlantic regions seeing the most significant increases. Prices also rose moderately in the West South Central region.