Good News for Buyers - Home Price Increase Slows
S&P Dow Jones Indices (S&P DJI) recently released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. The data show that home price gains continued to decelerate across the country.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 15.8% annual gain in July, down from 18.1% in the previous month. The 10-City Composite annual increase came in at 14.9%, down from 17.4% in the previous month. The 20-City Composite posted a 16.1% year-over-year gain, down from 18.7% in the previous month.
While home prices remained substantially above their year-ago levels, all 20 cities saw lower price increases in the year ending July 2022 versus the year ending June 2022.
Steepest month-over-month falloff on record
Before seasonal adjustment, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a -0.3% month-over-month decrease in July, while the 10-City and 20-City Composites both posted decreases of -0.8%. After seasonal adjustment, the U.S. National Index posted a month-over-month decrease of -0.2%, and the 10-City and 20-City Composites posted decreases of -0.5% and -0.4%, respectively. According to Craig J. Lazzara, managing director at S&P DJI, this was the “largest deceleration in the history of the index.”
In a separate report, the latest Federal Housing Finance Agency House Price Index (FHFA HPI®) showed that home prices fell nationwide in July, down 0.6% from the previous month. This was the first month-over-month decrease since May 2020 when pandemic-related lockdowns were imposed. This decline was widespread as eight of the nine census divisions saw a decrease.
Price growth strongest in the South and Southeast
Tampa, Miami, and Dallas reported the highest year-over-year gains among the 20 cities in July. Tampa led the way with a 31.8% year-over-year price increase, followed by Miami in second with a 31.7% increase, and Dallas in third with a 24.7% increase.
Economic uncertainty and higher mortgage rates have had a cooling effect on the housing market. CoreLogic expects home prices to likely continue to slow, though affordability challenges could remain.
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