National home prices continued to increase at a modest pace in July. While Los Angeles posted the strongest annual growth rate among the 19 metro areas, New York experienced a home price decline.
The S&P CoreLogic Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 4.7% in July, after a 1.8% increase in June. On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a 4.8% annual gain in July, up from 4.3% in June. The increase in home prices is largely driven by the unbalanced supply and demand factors of the market. Existing home sales in July reported the largest monthly gain on record while the July unsold inventory represented a 3.1-month supply at the current sales rate, down from 3.9-month in June.
Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 13.1% in July, following a 12.6% increase in June. On a year-over-year basis, the FHFA Home Price NSA Index rose by 6.4% in July, after an increase of 5.7% in June.
In addition to tracking home price changes nationwide, S&P reported home price indexes across 19 metro areas in July (Detroit metro area data was missing in July 2020 because there are not a sufficient number of records for the month of July for Detroit).
In July, local home prices varied and their annual growth rates ranged from -3.9% to 14.5%. Among all the 19 metro areas, 14 metro areas exceeded the national average of 4.7%. Los Angeles, Portland, Seattle and Boston had the highest home price appreciation. Los Angeles led the way with a 14.5% increase, followed by Portland with a 13.1% increase. Both Seattle and Boston increased by 11.6%. Home prices in New York declined by 3.9% in July.