US single-family home prices are increasing at a slower rate.
The S&P/Case-Shiller index of property values in 20 cities rose 8.1 percent in June from the previous year, the smallest annual gain since January 2013. The S&P/Case-Shiller US National Home Price Index, a broader report that covers all nine US census divisions, recorded a 6.2 percent annual gain in June.
All 20 cities in the index saw higher housing prices in June compared to the same period last year, but with diminished gains. New York posted the largest rise in home prices from May to June, with an uptick of 1.6 percent — the biggest monthly increase since June 2013. Chicago, Detroit and Las Vegas followed, with increases of 1.4 percent. Las Vegas witnessed its largest monthly gain since last summer.
“Home price gains continue to ease as they have since last fall,” David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices, said in a statement. “For the first time since February 2008, all cities showed lower annual rates than the previous month. Other housing indicators – starts, existing home sales and builders’ sentiment – are positive. Taken together, these point to a more normal housing sector.”
In San Francisco, the rate of price increases was half the pace compared to late last summer. The Sun Belt cities of Las Vegas, Phoenix, Miami and Tampa are still a third or more below their peak prices from almost a decade ago.
Source: S&P Dow Jones Indices and CoreLogic
Contracts on new homes sunk in July to an annualized pace of 412,000, the lowest level since March, the Commerce Department reported yesterday. However, resales of existing homes have surged to a pace of 5.15 million, the strongest numbers since September, according to the National Association of Realtors.