US home prices increased rose 18.6% yr/yr (consensus 19.0%) in June after being up 20.5% in May and the least in six months by the CoreLogic Case-Shiller 20-city home price index. For the month for June 0.4% vs. 1.0% estimate. Last month 1.2% (revised from1.3%). The biggest gains were reported in Tampa (35%), Miami (33%), and Dallas (28.2%) but price growth only accelerated in New York (14.6%) and Chicago (13.1%).
“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.” according to S&P Dow Jones & CoreLogic.
- Case-Shiller January US 20-city home price index was up 18.6% yr/yr (consensus 19.0%) in June after being up 20.5% in May.
- After seasonal adjustment, the U.S. National Index posted a month-over-month increase of 0.3%, and the 10-City and 20-City Composites posted increases of 0.3% and 0.4%, respectively.
- In June, 13 cities reported increases before and after seasonal adjustment
- The national index, covering all nine US census divisions, was up 18% year-on-year, down from 19.9% in the previous month.
- The FHFA House Price Index rose 0.1% in June after increasing a revised 1.3% (from 1.4%) in May.
The biggest gains were reported in Tampa (35%), Miami (33%), and Dallas (28.2%) but price growth only accelerated in New York (14.6%) and Chicago (13.1%). “
“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,” says Craig J.
Lazzara, Managing Director at S&P DJI.
“Relative to May’s 19.9% gain (and April’s 20.6%), prices are
clearly increasing at a slower rate. This pattern is consistent with our 10-City Composite (up 17.4% in
June vs. 19.1% in May) and our 20-City Composite (up 18.6% in June vs. 20.5% in May). It’s important
to bear in mind that deceleration and decline are two entirely different things, and that prices are still
rising at a robust clip. June’s growth rates for all three composites are at or above the 95th percentile of
historical experience. For the first six months of 2022, in fact, the National Composite is up 10.6%. In
the last 35 years, only four complete years have witnessed increases that large.
“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. Tampa (+35.0%) was the fastest
growing city for the fourth consecutive month, with Miami (+33.0%) and Dallas (+28.2%) holding on to
silver and bronze positions. Prices continued strongest in the Southeast (+29.6%) and South (+29.3%)
Source: S&P CoreLogic Case-Shiller
From The TradersCommunity News Desk