Home Prices Stumble, Still Up YoYBy Jesse Williams
The latest data from the leading index on home prices showed the largest month-to-month deceleration in prices in history, with a 2.3% deceleration between June and July, as the possibility of a painful housing correction continues to loom.
The S&P CoreLogic Case-Shiller U.S. National Home Price Index showed that prices were up 15.8% year-over-year in July, down from 18.1% the previous month. As home sales, permits, new construction and broker confidence have all plummeted over the last few months, prices have remained more resilient as low inventory and a strong job market prop up home values. As prices moderate from pandemic highs, there continue to be signs that the process could be a bump rather than a crash—though this month’s report will certainly have some feeling a little more concerned. Key findings:
“Although U.S. housing prices remain substantially above their year-ago levels, July’s report reflects a forceful deceleration,” said Craig J. Lazzara, managing director at S&P DJI, in a statement. “As the Federal Reserve continues to move interest rates upward, mortgage financing has become more expensive, a process that continues to this day. Given the prospects for a more challenging macroeconomic environment, home prices may well continue to decelerate.” Jesse Williams is a senior editor for RISMedia. |
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