The S&P CoreLogic Case-Shiller Indices reached a new all-time high, albeit with a decelerating trend, during June’s housing market.
The S&P CoreLogic Case-Shiller US National Home Price NSA Index, covering all nine census divisions, reported a 5.4% annual gain for June, down from a 5.9% annual gain in the previous month. The 10-City Composite recorded an annual increase of 7.4%, down from a 7.8% annual increase in the previous month, while the 20-City Composite posted a year-over-year increase of 6.5%, dropping from a 6.9% increase in the previous month.
The US National Index, the 20-City Composite, and the 10-City Composite upward trends continued month-over-month decelerating with pre-seasonality adjustment increases of 0.5%, 0.6%, and 0.6%, respectively. After the seasonal adjustment, the US National Index posted a month-over-month change of 0.2%, while the 20-City and 10-City Composite reported a monthly change of 0.4% and 0.5%, respectively.
New York City reported the highest annual gain among the 20 cities with a 9.0% increase in June, followed by San Diego and Las Vegas with annual increases of 8.7% and 8.5%, respectively. Portland recorded the lowest rank for the smallest year-over-year growth with only a 0.8% annual increase in June
“The S&P CoreLogic Case-Shiller Indices continue to show above-trend real price performance when accounting for inflation,” said Brian D. Luke, head of commodities, real and digital assets. “Home prices and inflation continue to factor into the political agenda coming into the election season. While both housing and inflation have slowed, the gap between the two is larger than historical norms, with our National Index averaging 2.8% more than the Consumer Price Index. That is a full percentage point above the 50-year average. Before accounting for inflation, home prices have risen over 1,100% since 1974 but have slightly more than doubled (111%) after accounting for inflation.”
Luke added, “Another popular theme is making housing more affordable to first-time homebuyers. We compared each of the 16 markets that the S&P CoreLogic Case-Shiller Home Price Indices calculate on a tiered basis to evaluate historical performance of more affordable homes. Our tiered indices divide each market into three price tiers, which range based on the market. Looking at the last five years, 75% of the markets covered show low-price tiers rising faster than the overall market.”
Separately, the Federal Housing Finance Agency (FHFA) reported second quarter house prices were up 5.7% year-over-year. The second quarter’s house prices were up 0.9% compared to the first quarter while the FHFA’s seasonally adjusted monthly index for June was down 0.1% from May.
“U.S. house prices saw the third consecutive slowdown in quarterly growth,” said Dr. Anju Vajja, deputy director for FHFA’s Division of Research and Statistics. “The slower pace of appreciation as of June end was likely due to higher inventory of homes for sale and elevated mortgage rates.”
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