Home-price growth slowed for the third consecutive month in June. Annual home price gains were up 18.0% year over year in June, bringing the S&P CoreLogic Case-Shiller National Home Price Index to a reading of 308.18. In May, the index saw a year-over-year increase of 19.9%.
Month over month, the U.S. National Index saw a 0.6% increase in home prices.
“The deceleration in U.S. housing prices that we began to observe several months ago continued in June 2022, as the National Composite Index rose by 18.0% on a year-over-year basis,” Craig J. Lazzara, the managing director at S&P DJI, said in a statement. “Relative to May’s 19.9% gain (and April’s 20.6%), prices are clearly increasing at a slower rate.”
The Case-Shiller 20-city home price index posted a 18.6% year-over-year increase, compared to 20.5% a month ago. The increase brought the 20-city index to a reading of 318.63. Only one of the 20 cities analyzed reported higher price increases in the year ending in June 2022 compared to the year ending in May 2022.
Home-price growth in the 10-city home price index also slowed in June, recording an annual gain of 17.4% to a reading of 330.20. In May, the 10-city index posted a year-over-year increase of 18.7%.
“The market’s strength continues to be broadly based, as all 20 cities recorded double-digit price increases for the 12 months ended in June. In 19 out of 20 cases, however, June’s reading was less than May’s, showing the impact of deceleration at the regional level,” Lazzara said.
Tampa, Miami and Dallas had the highest year-over-year gains among the 20 cities in June, with 35.0%, 33.0% and 28.2% yearly growth, respectively.
“Prices continued strongest in the Southeast (+29.6%) and South (+29.3%),” Lazzara said.
While prices continue to grow year over year, experts believe this price growth will continue to decelerate due to the shifting mortgage rate environment.
“We’ve noted previously that mortgage financing has become more expensive as the Federal Reserve ratchets up interest rates, a process that continued as our June data were gathered. As the macroeconomic environment continues to be challenging, home prices may well continue to decelerate,” Lazzara said.