Eye On Housing
In June, national home prices continued to rise at a fast and unsustainable rate. Strong demand and low housing inventory have been driving home prices at double-digit growths for eleven months. All 20 metro areas reported home price increases in June, while 12 of them had an acceleration in home price growth.
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 24.3% in June, following a 24.1% increase in May. It marks the eleventh consecutive month of double-digit growth in home prices since August 2020. National home prices are now 40.5% higher than their last peak during the housing boom in 2006. On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted an 18.6% annual gain in June, up from 16.8% in May. It is the fastest annual gain in the history of this index dating back to 1987.
Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 21.5% in June, following a 24.2% increase in May. On a year-over-year basis, the FHFA Home Price NSA Index rose by 18.8% in June, after an increase of 18.1% in May. The FHFA thus confirmed rapid growth in home prices for this month.
In addition to tracking national home price changes, S&P CoreLogic reported home price indexes across 20 metro areas in June. All 20 metro areas continued to show strong price gains and their annual growth rates ranged from 12.6% to 51.1%. Among all 20 metro areas, half metros exceeded the national average of 24.3%. Phoenix led the way with a 51.1% increase, followed by Tampa with a 46.0% increase and Las Vegas with a 45.3% increase. Twelve out of the 20 metro areas had an acceleration in home price growth, including Phoenix, San Francisco, Denver, Miami, Tampa, Atlanta, Chicago, Minneapolis, Charlotte, Las Vegas, Cleveland and Dallas.
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