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Home prices in the U.S. have reached a new record high, but are growing at a slower pace.
Released on Tuesday, the latest S&P CoreLogic Case-Shiller Index of national home prices hit an all-time high in June, growing 5.4% from one year ago. That was down from a 5.9% annual gain reported the previous month.
“This is the lowest rate of home price appreciation since November 2023, but it is still remarkable given the fact that home prices are at record highs and, in June, mortgage rates were still around 7%,” says Bright MLS Chief Economist Lisa Sturtevant. “The upward pressure on home prices is making this the most unaffordable housing market in history. First-time and moderate-income home buyers, in particular, increasingly are being left out of the housing market.”
Case-Schiller’s composite indices of home prices in the 10- and 20-largest U.S. cities also hit record highs for June, which is typically the seasonal peak of the year. The 10-city index grew 7.4% on the year, decelerating from a 7.8% gain the prior month. The 20-city index increased 6.5% from a year ago, down from 6.9% in May.
“We expect the rate of home price growth to slow somewhat further,” says Realtor.com® Chief Economist Danielle Hale. “Even though the number of homes on the market for sale trails 2017 to 2019 levels by 30%, the number of home sales has remained quite low.”
The Realtor.com economic research team projects home price growth of just 4.6% for the whole of 2024, suggesting price growth will continue to decelerate.
In June, New York reported the highest annual gain among the 20 largest cities, with prices rising 9%. Following were San Diego with 8.7% annual price growth and and Las Vegas with an increase of 8.5%.
Home prices in Portland, OR continued to grow at the slowest pace, rising just 0.8% in June from a year ago.
Developing story, check back for updates.