Northeast and Midwest offset flatlining home value growth

National home value growth ground to a near standstill in April, with moderate gains in the Midwest and Northeast offsetting declines in many Sun Belt and Western metros, reflecting the ongoing fragmentation of the US housing market.At the national level, the value of single-family homes as measured by repeat transactions rose 0.8% in April compared to a year ago, up from a 0.7% increase the month prior, according to data from the S&P Cotality Case-Shiller Index released Tuesday.“With inflation accelerating to 3.8% in April, home values have now declined in real terms for an 11th straight month, further eroding inflation-adjusted housing wealth,” says Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices.At the metro level, Chicago was again the strongest market in April among the 20 cities tracked by the index, boasting a 6.5% annual gain, trailed by New York (3.8%) and Cleveland (3.2%).For the second consecutive month, home values were falling faster in Seattle than in any other major market, with the Pacific Northwest hub seeing a 2.3% annual plunge, followed by Denver (-1.8%); Tampa, FL (-1.8%); Dallas (-1.6%), and Phoenix (-1.7%).“The affordability pinch remains a key headwind,” says Godec.“After dipping below 6% earlierthis year, 30-year mortgage rates climbed back to 6.3% in April, keeping financing costs elevated.

Inthis higher-rate environment, home price growth remains constrained, with housing largely treadingwater in nominal terms and falling in real terms.”Realtor.com senior economist Anthony Smith points out that despite the brief window of relief for homebuyers in February, the spring selling season got off to a slow start before gaining some momentum, with existing-home sales rising 3.2% in May to a five-month high of 4.17 million, and pending home sales climbing 3.8% with a 4.8% year-over-year gain.According to the economist, these are signs that buyers and sellers are finding ...