Northeast city sees biggest gain as home sales prices rise again

Home sales prices continued to increase through the first month of the new year, with one major metro market in the Northeast boasting the biggest annual gain.The latest S&P CoreLogic Case-Shiller Index data released Tuesday showed that the nationwide price went up 4.1% in January from a year ago, exceeding the 3.9% gain from December 2024.Home prices in the 20 major U.S.metros tracked by the index were up 4.7% in the 12 months ending in January, up from a 4.5% increase in the previous month.

The 10-city index also increased, going up 5.3%.Taken together, all three Case-Shiller indices showed accelerating home price growth compared to the previous month.New York City again reported the highest annual gain among the 20 cities with a 7.7% surge in January, followed by Chicago and Boston, with upswings of 7.5% and 6.6%, respectively.Meanwhile, Tampa, FL, showed the lowest return, dipping 1.5%, making it the only market to post an annual decline.“As the country as a whole faces tight inventory levels, regional variation in the housing market means that the impact varies geographically,” says Realtor.com Senior Economic Research Analyst Hannah Jones. “Relatively strong construction activity in the South and West have helped take some pressure off of home prices.However, the Northeast and Midwest continue to see demand significantly outstrip supply, which has led to more considerable price growth in the regions.” This month’s Case-Shiller release covers home sales that happened over November, December, and January—a period that saw growing inventory but also skyrocketing mortgage rates, which peaked at 7.04%, representing a nine-month high.Rates for 30-year fixed loans have since leveled out in the 6.6% to 6.7% range, offering homebuyers a welcome reprieve just in time for the spring selling season.A zoomed-in look at home price trends during the second half of the year revealed that San Francisco recorded the largest six-month decline...