Home prices continued to trend upwards in June as the benchmark 20-city index rose for a sixteenth consecutive month to a new all-time high. The S&P Case-Shiller Home Price Index revealed seasonally adjusted home prices for the 20-city index saw a 0.4% increase month-over-month (MoM) and a 6.4% increase year-over-year (YoY). After adjusting for inflation, the MoM was reduced to 0.1% and the YoY was reduced to 0.9%.
The benchmark 10-city index rose for a seventeenth consecutive month to a new all-time high in June. The seasonally adjusted home prices for the 10-city index saw a 0.5% MoM, and a 7.3% increase YoY. After adjusting for inflation, the MoM dropped to 0.2% and YoY dropped to 1.8%.
The benchmark national index rose for a seventeenth consecutive month to a new all-time high in June. The seasonally adjusted home prices for the national index saw a 0.2% increase MoM, and a 5.4% increase YoY. After adjusting for inflation, the MoM fell to -0.1% and YoY fell to -0.1%.
Here is the analysis from today's Standard & Poor's press release:
ANALYSIS
“The S&P CoreLogic Case-Shiller Indices continue to show above-trend real price performance when accounting for inflation,” says Brian D. Luke, CFA, Head of Commodities, Real & Digital Assets. “Home prices and inflation continue to factor into the political agenda coming into the election season. While both housing and inflation have slowed, the gap between the two is larger than historical norms, with our National Index averaging 2.8% more than the Consumer Price Index. That is a full percentage point above the 50-year average. Before accounting for inflation, home prices have risen over 1,100 percent since 1974, but have slightly more than doubled (111%) after accounting for inflation.
“Another popular theme is making housing more affordable to first-time homebuyers. We compared each of the 16 markets that the S&P CoreLogic Case-Shiller Home Price Indices calculate on a tiered basis to evaluate historical performance of more affordable homes. Our tiered indices divide each market into three price tiers, which range based on the market. Looking at the last five years, 75% of the markets covered show low-price tiers rising faster than the overall market,” according to Luke. “For example, the lower tier of the Atlanta market has risen 18% faster than the middle- and higher-tiered homes. New York’s low tier has the largest five-year outperformance, rising nearly 20% above the overall New York region. New York also has the largest divergence between low- and high-tier prices. New York’s high-tier homes have lagged the region’s market by 5.1%. Conversely, San Diego has seen the largest appreciation in higher-tier homes over the past five years. While the overall San Diego market has risen by 72% in the past five years, the high tiers have done even better, rising 79% versus 63% for the lower tier.”
