Home News Home prices weaken but are still much higher than a year ago: S&P Case Shiller

Home prices weaken but are still much higher than a year ago: S&P Case Shiller

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A “For Sale” sign outside a home in Albany, Calif., Tuesday, May 31, 2022.

David Paul Morris | Bloomberg | Bloomberg | Getty Images

House prices in June were 18% higher than the same month last year, according to S&P CoreLogic Case-Shiller Indices.

That’s a slower pace than May of this year, which posted an annualized increase of 19.9%. The 10-city composite index he rose 17.4%, down from 19.1% the previous month. The 20-city total increased 18.6% year-on-year, down from 20.5% in May.

Of the 20 cities, Tampa, Florida, Miami, and Dallas posted the fastest year-over-year growth in June, with increases of 35%, 33%, and 28.2%, respectively. Only 1 in 20 cities reported a price increase in the year ending June 2022 compared to the year ending May 2022.

“It’s important to keep in mind that a slowdown and a downturn are two different things, and prices are still rising steadily,” Craig Lazzara, managing director of S&P Dow Jones Indices, said in a release. Growth in June for all three Composite Indexes is at or above the 95th percentile of historical performance – in fact, in the first six months of 2022, the National Composite Index is up 10.6%.”

In the past 35 years, he said, only four full years have seen such a large increase.

Another report last week showed house prices fell 0.77% from June to July. It was his first monthly drop in nearly three years, according to mortgage software, data and analytics firm Black Knight.

The drop may seem small, but it’s the biggest one-month price drop since January 2011. Also, in his July performance dating back to 1991, he is his second worst performance during the Great Recession, behind only his 0.9% drop in July 2010.

Rising mortgage rates are softening home prices, further exacerbating an already expensive housing market. Sales of both new and existing homes have been declining for months, leading some economists to call it a housing slump.

“We have previously noted that mortgage financing has become more expensive as the Federal Reserve raises interest rates. This process continued while the June data was collected. House prices may continue to slow as the macroeconomic environment remains challenging,” Lazzara said.

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