US home price growth down to 9.2% as high mortgage rates subdued homebuyers in Q4 2022

Posted on January 20, 2023   |  

In the US, single-family home prices grew at a non-seasonally adjusted rate of 9.2% in Q4 2022, compared to Q4 2021, which is a year-on-year decline of 13.1%.

Every quarter, home prices increased at a seasonally adjusted rate of 0.2% in Q4, slightly above the 0.1% growth registered in Q3 but on a non-seasonally adjusted basis, home prices fell by 1.0%.

The high mortgage rates over the past year and inflation constrained the purchasing power of prospective homebuyers.

Homeowners who have rates well below current market rates have a financial obstacle, give up their current mortgage and purchase a different home at a higher mortgage rate, thereby lowering the supply of homes available for sale.