The housing market just made a surprise rebound as prices rise after 7 consecutive months of declines

• US home prices climbed month-over-month in February as buyers returned to the market, S&P CoreLogic Case-Shiller data showed Tuesday.
• The index rose 0.2% in February compared to January, though it remains 4.9% below its peak in June 2022.

US housing prices made a surprise jump month-over-month in February, according to S&P CoreLogic Case-Shiller data released Tuesday.

The moderate uptick ended seven consecutive months of declines, signaling a return of homebuyers to the market. Still, the index remains near its lowest rate in a decade.

The group's US National Home Price Index, which covers all nine US census divisions, reported a 2% annual gain in February, lower than the 3.7% seen the prior month.

"Home price trends moderated in February 2023," Craig J. Lazzara, managing director at S&P DJI, said in a statement, adding that the National Composite now stands 4.9% its June 2022 peak.

The report's 20-City Composite Index showed home prices climbed 0.1% month-over-month on a seasonally adjusted basis, and 0.4% compared to the same time in 2022. Eight of the 20 major metros reported higher prices.

Notably, regional price changes varied, with the biggest year-over-year jumps coming in Miami (+10.8%), Tampa (+7.7%), and Atlanta (6.6%).

While the southeast remains strong, major cities in the west saw declines. San Francisco, Seattle, San Diego, and Portland, for example, were all negative year-over-year.

"The results released today pre-date the disruptions in the commercial banking industry which began in early March," Lazzara said. "Although forecasts are mixed, so far the Federal Reserve seems focused on its inflation-reduction targets, which suggests that interest rates may remain elevated, at least 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."

Meanwhile, the National Association of Realtors reported last week that existing-home sales slipped 2.4% in March. That followed a 14.5% jump in February, which at the time ended a 12-month streak of declines.

The median sales price on existing homes dipped to $375,700, 0.9% lower compared a year ago.