Home prices rose 3.8 percent year-over-year in January, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. That's down from a 5.6 percent annual increase in December in another sign that the red-hot housing market of 2021 and early 2022 is fading in the rearview mirror.
Indeed, the index actually declined 0.5 percent month-over-month, as higher mortgage rates continued to put downward pressure on the housing market.
"January’s market weakness was broadly based," said Craig J. Lazzara, managing director at S&P DJI in a press release. "Before seasonal adjustment, 19 cities registered a decline; the seasonally adjusted picture is a bit brighter, with only 15 cities declining. With or without seasonal adjustment, most cities' January declines were less severe than their December counterparts."
Cities such as Miami, Tampa, and Atlanta are still seeing huge price gains, however, with Miami leading the pack at 13.8 percent year-over-year. Tampa came in second at 10.5 percent, and Atlanta in third at 8.4 percent.
Despite these standouts, S&P DJI is anticipating more headwinds.
“Financial news this month has been dominated by ructions in the commercial banking industry, as some institutions’ risk management functions proved unequal to the rising level of interest rates," Lazzara said. "Despite this, the Federal Reserve remains focused on its inflation-reduction targets, which suggest that rates may remain elevated in the near-term. Mortgage financing and the prospect of economic weakness are therefore likely to remain a headwind for housing prices for at least the next several months.”
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
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