In 2021, home prices set a record. According to the S&P Case-Shiller Home Price Indices, they were nearly 19 percent higher than they were the year before. That was the largest annual home price gain in the 35-history of S&P's index. Last year, though, prices slowed considerably, and with S&P's latest release we know just how much. The index found that, after peaking in June, home prices ended the year up 5.8 percent from the previous year.
Craig J. Lazzara, managing director at S&P, says prices started cooling half way through 2022. “The cooling in home prices that began in June 2022 continued through year end, as December marked the sixth consecutive month of declines for our National Composite Index,” Lazzara said. “For 2022 as a whole, the National Composite rose by 5.8 percent, the 15th best performance in our 35-year history, although obviously well below 2021's record-setting gain.” Depending on where the economy and mortgage rates head from here, Lazzara said it's possible prices could continue their cooling trend this year.
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