• Home prices cranked it up to “beast mode,” surging by 5.1% between November 2022 to November 2023.
• However, there was an unexpected speed bump, with prices slipping by 0.2% from October to November 2023.
• Analysts were caught off-guard by the slight slowdown, scratching their heads and adjusting their ties nervously.
• Still, the year-over-year growth remained in the positive territory, meaning homeowners could still gloat at cocktail parties about their smart investments.
• Economists have thrown in their two cents, pointing at the usual suspects of low inventory and high demand for the continued upward price push.
• The cooler autumn month did put a slight chill in some hot markets, especially in the high-end segment where homes are snatched up faster than limited edition sneakers.

When Real Estate Does the Cha-Cha: Home Prices Up, Then Slightly Down

A Year of Growth, with a Slight November Nibble

In the world of real estate, the only certain thing is uncertainty. And the wildest roller coaster ride, the home price index, did not disappoint in putting on a thrilling show. From a charging bull to a slight duck in November, it was a year that had real estate pundits both excited and exasperated.

Analysts Caught Out in the Cold

Analysts, the soothsayers of the industry, were left shivering as the ice-cold 0.2% dip took them by surprise. They are now scrambling for answers, scrolling furiously through spreadsheets, nursing their bruised egos with lukewarm coffee.

The Road Ahead: Still Cruising or Bracing for a Bruising?

In the face of these surprising numbers, economists are busy gazing at their crystal balls (or data models, but let’s not ruin the magic). With the usual suspects of low inventory and high demand still rampant, many are betting on a continued bull run. However, the high-end segment might have to sweat it out in the gym a bit more before they race out of the blocks again.

So, what’s my hot take on all this real estate tango? Well, if home prices were a person they would be that unexpected relative at your birthday party. You know the type; one moment they’re the life of the party, dishing out jokes left and right, the next they’re snoozing on the couch, party hat askew. But that’s the beauty of real estate – it keeps you on your heels, always ready for a surprise. I’m just waiting for them to burst into a salsa now. Keep those dancing shoes handy, folks!

Original article: https://www.inman.com/2024/01/30/home-price-growth-accelerated-in-november-alongside-high-rates/