June Home Price Growth Picks Up, But The U.S. Housing Market Remains Stuck In Place

U.S. home prices rose 1.5% year over year in June, up from 1.2% in May. The 10-City and 20-City Composite indices increased 2.9% and 2.1%, respectively, continuing to outpace the national index.

On a month-over-month basis, the national index increased 0.4%. That was half the average June gain of 0.8% recorded from 2015 through 2019, showing that the market is moving forward but remains weak by normal seasonal standards.

“June’s numbers show a housing market that is finding its footing, though progress remains slow,” said Thomas Malone, principal economist at Cotality. “While the 0.4% monthly increase was positive, it was only half the typical pre-pandemic June gain. Annual appreciation accelerated across most major metros, suggesting the market is moving in the right direction despite an uneven recovery. Buyers and sellers can approach the second half of the year with cautious optimism, but this remains a steady climb rather than a rapid rebound.”

Home price highlights

  *   Annual appreciation strengthened: While national home price growth accelerated overall, gains varied considerably across indices. The 10-City and 20-City Composite indices increased 2.9% and 2.1%, respectively, continuing to significantly outpace the national trend.

  *   Monthly growth remained below the seasonal norm: While prices continued to move in a positive direction, gains were generally muted compared to historical benchmarks. National prices increased 0.4% from May to June, which was only half the pre-pandemic average June gain of 0.8% recorded from 2015 through 2019, showing that monthly momentum remains soft by normal seasonal standards.

  *   Annual growth accelerated across most major metros: Sixteen of the 20 metros recorded faster year-over-year appreciation in June than in May. Chicago posted the strongest annual gain at 6.9%, significantly outperforming the rest of the country, while Seattle recorded the weakest reading with a 1.9% decline.

  *   Monthly changes showed a wide regional divide: New York posted the strongest month-over-month increase at 1.0%, significantly outperforming broader trends. In contrast, Seattle recorded the largest decline at 0.5%, indicating continued weakness in parts of the West.

  *   Higher-priced homes led monthly appreciation: Across the 16 metros with tier-level indices, prices increased an average of just 0.1% in the low tier and 0.3% in the middle tier, compared to 0.4% in the high tier. Chicago recorded broad-based gains across all three tiers, whereas Seattle’s notable weakness was primarily concentrated in the high tier.

While the housing market remains cool relative to recent years, the June data point to a broader trajectory toward a more sustainable path. Continued strength in parts of the Northeast and Midwest presents a clear contrast to ongoing softness in several pandemic-era boom markets across the West and South. While these underlying improvements are genuine, overall recovery continues at a slow, uneven pace across regions and price tiers.