Home Price Appreciation Slows in June

Home price appreciation slowed in June as inventory levels and mortgage rates rose at the start of the summer, according to the Case-Shiller Home Price Index…(Case-Shiller)

  • Y-O-Y: The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported an 18.0% annual gain in June, down from 19.9% in the previous month. This is the third month in a row that prices have slowed from the prior month.
  • M-O-M: Home prices are still climbing month-month as the U.S. National Index posted a 0.6% gain in June, down from the 1.5% gain reported in June.

Top markets still hot in June. Despite the slowdown, Tampa still had the hottest market in the country with a 35.0% year-over-year price increase followed by Miami (+33.0% and Dallas (+28.2%).

  • While Tampa is extremely it is slightly cooler from the high last month when prices were up 36.1% year-over-year.

Fell more than expected. The housing market may be slowing faster than economists thought. Economists had projected that the 20-city composite would fall to 19.5% but it actually fell to 18.6%.

Case-Shiller was not the only report showing home price growth slowing in June. The FHFA Home Price Index actually reported price gains falling at a faster rate from the prior month…(FHFA)

  • Y-O-Y: Home prices were up 16.2% in June when compared to June 2021, this is down from 18.3% in May.
  • M-O-M: The seasonally adjusted index was only up 0.1% from May which was down significantly from the 1.4% gain reported in May.

Top states. Florida took the top spot in the second quarter with 29.8% year-over-year price growth followed by Arizona (+25.5%) and North Carolina (+25.2%).

  • Annual price increases were greatest in North Port-Sarasota-Bradenton, FL, where prices increased by 36.4% year-over-year.

Deceleration will continue. Craig J. Lazzara, Managing Director at S&P DJI, said in a statement, “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.”