Single-Family Home Price Increases Decelerate
Single-family home price growth in the U.S. decelerated again in June, although remained in all-time high territory. Home prices climbed 18.0% year-over-year in June, according to the S&P CoreLogic Case-Shiller U.S. National Home Price index which measures average home prices nationwide. While home price increases continue at a robust clip, the rate of acceleration slowed over the last three months, registering at 20.6% in April, 19.9% in May and now 18.0% in June. Although home prices remain elevated, higher interest rates from the Federal Reserve have increased the cost of financing a home, which has contributed to slowing price increases. This pattern of deceleration was apparent at a regional level. The S&P CoreLogic Case-Shiller 20-City Composite Index posted a 18.6% gain in June, down from 20.5% in May. In June 2022, only one of the 20 cities in the index reported higher price increases than in the prior month: Tampa, with a 35.0% year-over-year increase. Still, the remaining 19 cities recorded double-digit price hikes over the past year, just at a slower pace. Sun Belt cities again led the composite index with Miami (33.0%) and Dallas (28.2%) coming in behind Tampa for the highest year-over-year gains among the 20 cities in June. The smallest gains were seen in Minneapolis (10.4%), Washington, DC (10.8%) and Cleveland (12.8%).