Single-Family Home Price Increases Continue to Decelerate
Single-family home price growth in the U.S. continued to decelerate in July amid higher mortgage interest rates which have doubled over the past year. Home prices rose 15.8% year-over-year in July, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index which measures average home prices across the nation. While home price increases continue at a robust clip, the rate of acceleration slowed over the last four months. The annual increase in July was down from the 18.1% jump in May and well below the all-time high of 20.8% in March. Moreover, the deceleration in price increases from June to July (2.3 points) was the largest decline in the history of the index. This pattern of deceleration was apparent at a regional level. The S&P CoreLogic Case-Shiller 20-City Composite Index posted a 16.1% annual gain in July, down from 18.7% the previous month. All 20 cities in the index reported lower year-over-year price increases in July 2022 compared to June 2022. Sun Belt cities continued to log the biggest annual gains in July, led by Tampa (31.8%), Miami (31.7%) and Dallas (24.7%). The smallest gains were seen in Minneapolis (9.0%) and Washington DC (9.4%), the only two cities below double-digit growth.