Home News ‘Prices are clearly increasing at a slower rate’: Housing market cools from April’s peak, led by Seattle, San Francisco and San Diego

‘Prices are clearly increasing at a slower rate’: Housing market cools from April’s peak, led by Seattle, San Francisco and San Diego

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Number: Growth in the S&P CoreLogic Case-Shiller 20 Urban Home Price Index slowed to 18.6% y/y in June from 20.5% the previous month.

The 20 Cities Index rose 0.4% on a seasonally adjusted basis in June, down from 1.3% in May.

After peaking at 21.2% in April, the inflation rate has slowed sharply.

The national index, a broader measure of house prices, rose 0.3% in June from May on a seasonally adjusted basis. June’s monthly growth rate was the lowest in two years.

a another report May-June monthly gains from the Federal Housing Finance Agency were 0.1%. And last year, the FHFA index rose 17.7%.

Key details: Tampa, Miami and Dallas reported the highest year-over-year increases among the 20 cities in June. Price growth was highest in the South and Southeast, with increases of over 29%.

Cleveland, Minneapolis, and Washington, DC reported the lowest year-over-year growth, but house prices are still rising in these cities.

No cities reported price drops.

Big picture: Economists and property firms have stressed that price growth has slowed significantly.

And in boomtowns of the pandemic, more homes are listed on the market, with prices slashed.

This is partly because mortgage rates are trending higher and buyers are reluctant to jump in. The average 30-year fixed rate was 5.55% last Thursday, according to the . freddie macAt the same time last year, the rate was 2.68%.

Markets are also affected by economic uncertainty, with buyers wanting to sell before demand drops further, and buyers wanting to wait.

City

Change from May to June

Seattle

-1.90%

San Francisco

-1.30%

San Diego

-0.70%

Los Angeles

-0.40%

Portland

-0.10%

Denver

-0.10%

Washington

0%

boston

0.60%

Minneapolis

0.70%

Detroit

0.90%

Dallas

1%

phoenix

1%

New York

1.10%

cleveland

1.20%

Atlanta

1.30%

Las Vegas

1.50%

Charlotte

1.80%

Chicago

1.80%

Tampa

2.20%

Miami

2.30%

Composite-20

0.40%

What the report’s producers said: Craig J. Lazzara, Managing Director of S&P DJI, said, “Prices are clearly rising at a slower pace, but slowdowns and declines are two very different things, and prices are still up with a strong clip. It is important to keep in mind that ”

Lazzara said June’s growth was above the 95th percentile of historical price gains.

S&P stressed that prices are still rising strongly. In the first half of this year, prices nationwide he rose 10.6%. Over the past 35 years, this growth rate was achieved in just four years, the company said.

At the national level, “western markets, including Seattle, coastal California cities, Portland and Denver, experienced the most notable slowdown in June home price growth,” CoreLogic deputy chief economist Thelma Hepp said. Stated.

CoreLogic expects home prices to continue to slow next year, but not in most markets.

An outside economist said: “June house prices were well below expectations,” said Rubira Faroochi, chief U.S. economist at High Frequency Economics, in a report.

“Year-over-year profits remain high despite a move in the right direction. Rising mortgage rates, still undersupplied and rising prices constrain buyers,” he said. “Prices should continue to fall as demand weakens and supply gradually eases,” he said.

Market reaction: stock
DJIA,
-0.81%

SPX,
-1.01%

It is set to open high on Tuesday. 10 year government bond yield
TMUBMUSD10Y,
3.124%

I slipped a little.

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