Home Price Gains Continued in December

Economics
Published

Despite high mortgage rates, limited inventory and strong demand continued to push up home prices, which hit a new all-time high in December.

The S&P CoreLogic Case-Shiller U.S. National Home Price Index (HPI), reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 2.4% in December, slower than a 3% increase in November. It marks the fourth straight month of deceleration since September. Nonetheless, national home prices are now 70% higher than their last peak during the housing boom in March 2006.

On a year-over-year basis (YOY), the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a 5.5% annual gain in December, up from a 5% increase in November. It was the highest year-over-year gain over the past 12 months.

Home price appreciation slowed greatly over the past year; the average YOY home price gain for 2023 was 2.4%, after the double-digit gains seen in the previous two years. Home prices are stabilizing as more buyers and sellers enter the market.

Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 1.2% in December, following a 4.3% increase in November. On a year-over-year basis, the FHFA Home Price NSA Index rose 6.5% in December, down from 6.6% in the previous month.

Locally, six of 20 metro areas experienced negative home price appreciation in December. NAHB Director of Forecasting and Analysis Jing Fu provides a breakdown in this Eye on Housing post.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

IBS | Leading Suppliers Council | Design

Jun 20, 2025

The New American Home 2026: Innovation Meets Impact

The New American Home 2026, the official show home of the 2026 NAHB International Builders’ Show® in Orlando, is already drawing industry buzz for its distinctive design and rare structural features.

Remodeling | Publications

Jun 19, 2025

Award-Winning Advice: Surround Yourself With Good People

In the latest edition of Pro Remodeler, 2024 Remodeler of the Year Mike Pressgrove shares advice from his career.

View all

Latest Economic News

Economics

Jun 20, 2025

Single-family Construction Loan Volume Grows

Credit conditions for builders and developers eased in the first quarter of 2025 as the level of outstanding 1-4 family residential construction loans rose for the first time in two years, according to data released by FDIC.

Economics

Jun 18, 2025

The Fed Pause Continues

Reflecting most forecasters’ expectations for the June FOMC meeting, the Federal Reserve continued its post-2024 pause for federal funds rate cuts, retaining a target rate of 4.5% to 4.25%.

Economics

Jun 18, 2025

Sharp Drop in Multifamily Production Brings Overall Housing Starts Down

A sharp decline in multifamily production pushed overall housing starts down in May, while single-family output was essentially flat due to economic and tariff uncertainty along with elevated interest rates.