Aug. 30 (UPI) — While home prices rose at a slower annual pace in June, the increase was still sizable at 18%, according to the new S&P CoreLogic Case-Shiller Indices released Tuesday.
That pace was down from a 19.9% annual gain in May, the report said, showing a small sign of relief for potential homebuyers, according to the S&P CoreLogic.
The survey’s 20-city composition of the country’s largest housing markets also showed a slowdown, with year-to-year price increases of 18.6% in June, compared to 20.5% in May.
Tampa, Fla., Miami and Dallas continued to show the country’s greatest housing price spikes. Tampa home prices increased 35% in June over the past year, followed by 33% in Miami and 28.2% in Dallas.
“The deceleration in U.S. housing prices that we began to observe several months ago continued in June 2022, as the National Composite Index rose by 18.0% on a year-over-year basis,” Craig J. Lazzara, managing director at S&P DJI, said in a statement. “Relative to May’s 19.9% gain (and April’s 20.6%), prices are clearly increasing at a slower rate.
“It’s important to bear in mind that deceleration and decline are two entirely different things, and that prices are still rising at a robust clip. June’s growth rates for all three composites are at or above the 95th percentile of historical experience.”
Lazzara said for the first six months of 2022, in fact, the National Composite is up 10.6%. In the last 35 years, only four complete years have witnessed increases that large.
“The market’s strength continues to be broadly based, as all 20 cities recorded double-digit price increases for the 12 months sent in June,” he said. “In 19 out of 20 cases, however, June’s reading was less than May’s, showing the impact of deceleration at the regional level.”