Home Prices Rise 0.9% YoY Despite Lower Mortgage Rates (Blue City Mean Reversion, New York 4.9% YoY Gain, Chicago 4.6% YoY, Cleveland 3.6% YoY While Tampa -2.5%)

We are seeing mean reversion in home prices in red cities and blue cities.

The price of homes in America’s to 20 cities rose just 0.16% MoM in January (the lowest MoM rise since August and well below the 0.35% MoM expected.

Source: Bloomberg

Home prices rose 0.9% YoY as mortgage rates have fallen. Home prices are still too high.

New York leads with a 4.9% annual gain, followed by Chicago at 4.6% and Cleveland at 3.6%, while Tampa fell 2.5%…

Don’t be confused. This isn’t leftists running to blue cities. It is mean reversion. The prior fleeing blue cities to red cities created a mean reversion effect where red cities home prices rose too fast and blue cities fell too fast.

Little Rock?