Jan 25, 2022 - Economy
Home prices waver
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The red-hot flame under home prices is flickering. Slightly.
Catch up quick: Price growth slowed in November, according to the closely watched S&P CoreLogic Case-Shiller National Home Price Index out today.
- November 2021 prices were 18.8% higher than in November 2020, a slowdown compared to October's 19% year-over-year growth.
The big picture: Demand continues to outpace the supply of homes despite prices.
- While record-high inflation fuels price growth — think greater construction costs — it hasn’t impacted demand for housing, Danielle Hale, chief economist at Realtor.com, tells Axios.
- “Inflation also makes real estate more desirable as an asset that keeps pace with the price level,” she says.
What to watch: Rising mortgage rates — a consequence of trying to head off inflation — will eat into the purchasing power of homebuyers in the year ahead, says Hale.
