National home prices post 1.5 percent annual gain in June
In June, the S&P Cotality Case-Shiller U.S. National Home Price Index recorded a 1.5% annual gain, up from a 1.2% rise in May. The 10-City Composite increased 2.9% year-over-year, up from a 2.4% gain the previous month, while the 20-City Composite moved up 2.1%, up from 1.6% in May. Chicago again posted the highest annual gain at 6.9%, followed by New York at 4.8% and Cleveland at 4.1%. Meanwhile, Seattle posted the lowest annual return, with prices falling 2.0%.
On a month-over-month basis, the U.S. National Index advanced 0.4% before seasonal adjustment. At the same time, the 10-City and 20-City Composites stepped up 0.5% and 0.4%, respectively. After seasonal adjustment, the National Index edged up 0.1%, while the 10-City and 20-City Composites increased, ticking up 0.3% and 0.2%, respectively. The Northeast and Midwest continued to outperform regions, continuing a year-long trend. At the same time, in addition to Seattle, Las Vegas (down 1.9%), Denver (down 1.2%), Tampa (down 1.2%), Phoenix (down 0.9%), Dallas (down 0.7%) and Portland (down 0.4%) exhibited declines in June.
Looking forward, June typically marks the peak of the spring lift in homebuying, leaving a potential for cooling going forward. Mortgage rates remained near 6.5% in June, continuing to hurt affordability and stunt demand. Despite a stepdown in inflation, home prices continue to decline in real terms.
