Home prices in June hit an all-time high, but the rate of growth is slowing, according to the S&P CoreLogic Case-Shiller Index…
- M-O-M: Home prices rose by 0.2% from the previous month, down from a 0.3% increase in May — the smallest monthly rise since December 2023.
- Y-O-Y: Home prices increased 5.4% year-over-year in June, down from 5.9% in May. It’s the slowest annual growth rate since November 2023.
Beat The Street: The 20-City Composite saw a 6.5% year-over-year increase, lower than May’s 6.9% but better than the 6.0% expected by economists.
BIG Apple: New York led the pack with a 9.0% annual increase, followed by San Diego (8.7%) and Las Vegas (8.5%).
- Portland had the slowest growth among the top 20 cities, with just a 0.8% annual rise.
What They’re Saying: Brian D. Luke, Head of Commodities, Real & Digital Assets at S&P Dow Jones Indices, highlighted the spread between inflation and home price growth “Home prices and inflation continue to be intertwined in the political discourse as election season nears. While both have moderated, the gap between them remains wider than usual, with home prices outpacing inflation by an average of 2.8% — a full percentage point above the 50-year norm.”
The Bottom Line: While home prices continue to hit record levels, the pace of growth is showing signs of cooling, easing some pressure on buyers in a still-tight housing market. However, the widening gap between housing prices and inflation will remain a critical factor to watch heading into election season.
