KEY POINTS
- Home prices rose 4.3% annually in June, unchanged from the gain seen in May, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.
- The 10-City Composite increased 2.8% annually, down from 3% in the previous month. The 20-City Composite rose 3.5% year over year, down from 3.6% in the previous month
Home prices increased 4.3% every year in June, unchanged from the gain seen in May, according to the S&P CoreLogic Case-Shiller U.S. National House Cost NSA Index.
Gains had slowed somewhat in May, so this appears to be a little healing from the coronavirus-induced setback in house sales in March and April.
The 10-City Composite increased 2.8% annually, down from 3% in the previous month. The 20-City Composite increased 3.5% year over year, below 3.6% in the previous month.
Phoenix, Seattle, and Tampa, Florida, continued to publish the greatest annual gains among the 19 cities (Detroit was excluded due to continued reporting problems). Phoenix home rates jumped 9% every year, followed by Seattle with a 6.5% increase and Tampa with a 5.9% increase. 5 of the 19 cities reported greater cost boosts in the year ended June 2020 versus the year ended May 2020.
“More information will be needed to understand whether the market resumes its previous path of accelerating prices, continues to decrease, or remains stable,” said Craig Lazzara, managing director at S&P Dow Jones Indices. “That stated, it’s important to remember that deceleration is quite different from an environment in which prices fall.”
House prices are being sustained by strong competition among purchasers for a very slim supply of houses for sale. Inventory at the end of July was down 21% yearly, according to the National Association of Realtors. Unsold stock is now at a 3.1-month supply at the present sales rate, below 3.9 months in June and from a 4.2-month supply in July 2019.
Meanwhile, home sales, which plummeted in March and April due to the coronavirus pandemic, have now recovered and then some. Sales of existing homes leaped more than 20% month to month in June and continued to soar even higher in July when they were nearly 9% greater annually.
