Eye On Housing
National home prices increased modestly in June. While Las Vegas, San Francisco, New York, Chicago, Seattle, Boston and Cleveland experienced price declines, Charlotte posted the strongest annual growth rate among the 19 metro areas in June.
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 2.1% in June, following a 0.5% increase in May. On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a 4.3% annual gain in June, the same increase as in May. The increase in home prices is largely driven by the unbalanced supply and demand. Existing home sales rebounded sharply in June while the unsold inventory represents a 4.0-month supply at the current sales rate, down from 4.8-month in May.
Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 11.6% in June, following a 2.7% decrease in May. On a year-over-year basis, the FHFA Home Price NSA Index rose by 5.7% in June, after an increase of 4.9% in May.
In addition to tracking home price changes nationwide, S&P reported home price indexes across 19 metro areas in June (Detroit metro area data was missing in March, April, May and June 2020 because transactions records for Wayne county, Michigan were unavailable).
In June, local home prices varied and their annual growth rates ranged from -7.8% to 8.1%. Among all the 19 metro areas, 12 metro areas reported positive annual growth rates and 7 had negative annual growth rates. Charlotte, Phoenix and Dallas had the highest home price appreciation. Charlotte led the way with an 8.1% increase, followed by Phoenix with a 7.6% increase and Dallas with a 4.8% increase. Home prices declined in Las Vegas (-7.8%), San Francisco (-6.6%), New York (-5.3%), Chicago (-5.2%), Seattle (-2.2%), Boston (-1.6%) and Cleveland (-0.6%).
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