US CoreLogic S&P Case-Shiller Index Continues Slowing, Up 5.4% Annually In June
High mortgage interest rates continue to challenge the housing market, and homebuyers’ budgets are increasingly stretched when buying a home. Overall, there is more caution in the housing market as housing indicators continue to revert to pre-pandemic trends and buyers evaluate their options.
“Home price appreciation should remain moderate in the next few months as all eyes are on the Federal Reserve and the anticipated rate cut in September, and likely homebuyers may wait until mortgage rates drop further before buying. Renewed home buying demand could also give a boost to home prices,” said Molly Boesel, CoreLogic Principal Economist.
In July, existing home sales activity ticked up from a month prior thanks to small decreases in mortgage rates in late May and early June. Nevertheless, sales remain low. Although sales struggled, home prices remained relatively constant in most markets despite more inventory of for-sale homes.
June marked the twelfth straight month of annual appreciation. Home prices continued to hit new highs and were up by 5.5% when compared with the June 2022 peak. However, the market has begun to put the brakes on growth.
The CoreLogic S&P Case-Shiller Index slowed to a 5.4% year-over-year gain in June after peaking at 6.5% in both February and March of this year.
The non-seasonally adjusted, month-over-month index continued to show a slowing seasonal increase. The index was up by 0.5%, well below the 0.8% average June increase recorded between 2015 and 2019 and is a sharp contrast to the 1% monthly increase from June 2023.
The 10-city and 20-city composite indexes also posted their twelfth straight month of annual increases in June, up by 7.4% and 6.5%, respectively. However, the increases seen in both composite indexes also slowed from the March peak. Compared with the 2006 peak, the 10-city composite index is now 56% higher, while the 20-city composite is up by 62%. Adjusted for inflation, which is showing signs of easing, the 10-city index is now 6% higher than its 2006 level, while the 20-city index is up by 10% compared with its 2006 high point. Nationally, home prices are 20% higher (adjusted for inflation) compared with 2006.
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