Home prices continued to increase at a modest rate across the U.S. in June, according to the latest results for the S&P CoreLogic Case-Shiller Home Price Indices.
At the national level, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, which covers all nine U.S. census divisions, reported a 4.3% annual home price gain in June, with no gain from the previous month. The 10-City Composite index showed a 2.8% YOY increase in home prices, down from 3% the previous month, and the 20-City Composite showed a 3.5% YOY increase, down from 3.6% the previous month.
Phoenix, Seattle, and Tampa, Fla., posted the highest year-over-year home price gains out of the 19 cities in this month’s data set. (Owing to COVID-19-related delays at the local recording office in Wayne County, Mich., S&P Dow Jones Indices and CoreLogic are unable to generate valid data for the Detroit S&P CoreLogic Case-Shiller indices for the August release. Detroit index values will be provided when the data is available.) Home prices in Phoenix rose by 9% YOY, according to the Case-Shiller Index, while Seattle prices rose by 6.5% YOY and Tampa prices by 5.9% YOY. Five out of the 19 cities reported higher YOY price gains in June than in May.
On a month-over-month basis, the National Index rose by 0.6% in June, while the 10-City and 20-City Composites rose by 0.1% and 0.2% before seasonal adjustment. On a seasonally adjusted basis, the National Index rose 0.2% month over month, while the 10-City Composite fell 0.1% and the 20-City Composite did not record any gains.
"Housing prices were stable in June,” says Craig J. Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices. “The National Composite Index rose by 4.3% in June 2020, as it had also done in May (June’s growth was slightly lower in the 10- and 20-City Composites, which were up 2.8% and 3.5%, respectively). More data will be required to understand whether the market resumes its previous path of accelerating prices, continues to decelerate, or remains stable. That said, it’s important to bear in mind that deceleration is quite different from an environment in which prices actually fall … As has been the case for the last several months, prices were particularly strong in the Southeast and West, and comparatively weak in the Midwest and (especially) Northeast.”