U.S. home prices continued to set new records in July, but the pace of growth is decelerating, according to the latest S&P CoreLogic Case-Shiller Index.
- Y-O-Y: The U.S. National Home Price NSA Index recorded a 5.0% annual gain for July, down from 5.5% in June — marking the lowest rate of growth since November 2023.
- M-O-M: Home prices rose by 0.2% in July, continuing the momentum of the previous month.
Beating The Street: The 20-City Composite saw a 5.9% year-over-year increase, a drop from 6.5% in June but slightly above expectations of 5.8%.
- New York led the pack with an 8.8% annual gain, followed by Las Vegas at 8.2% and Los Angeles at 7.2%. At the other end of the spectrum,
- Portland reported the smallest increase at just 0.8%, unchanged from the previous month.
What they’re Saying: Brian D. Luke, CFA, Head of Commodities, Real & Digital Assets, pointed out that July marked the 14th consecutive record high for the National Index. He noted that while lower-tier homes have shown stronger performance over the past three and five years, this has both helped and hindered first-time homebuyers. “The relative outperformance of low-price-tiered indices has benefited first-time buyers but made it harder for many to find affordable starter homes.”
The bottom line: Although price growth is slowing, the ongoing strength in home values continues to challenge affordability for new buyers, especially in lower-priced markets.
