The national Home Price index reported a 15.8% annual gain in July, down from 18.1% in June – the largest price deceleration in the history of the index.

NEW YORK – S&P Dow Jones Indices (S&P DJI) released its July report on U.S. home prices, finding that home price gains decelerated across the United States at the fastest pace in more than 27 years of history.

Year-over-year

The S&P CoreLogic Case-Shiller index, which covers all nine U.S. census divisions, reported a 15.8% annual gain in July, down from 18.1% in the previous month. The 10-City Composite annual increase came in at 14.9%, down from 17.4% the previous month. The 20-City Composite posted a 16.1% year-over-year gain, down from 18.7% the previous month.

All 20 cities reported lower price increases in the year ending July 2022 versus the year ending June 2022.

“Although U.S. housing prices remain substantially above their year-ago levels, July’s report reflects a forceful deceleration,” says Craig J. Lazzara, managing director at S&P DJI. “For example, while the National Composite Index rose by 15.8% in the 12 months ended July 2022, its year-over-year price rise in June was 18.1%. The -2.3% difference between those two monthly rates of gain is the largest deceleration in the history of the index.”

Lazzara says the 10-year and 20-year indexes showed similar results. The 10-year was up 14.9% in July vs. 17.4% in June and the 20-City Composite was up 16.1% in July vs. 18.7% in June.

On a month-over-month basis, all three composites declined in July.

July’s year-over-year price change was positive for each one of the 20 cities with a median gain of 15.0%, but in every case, July’s gain was less than June’s,” says Lazzara. “Prices declined in 12 cities on a month-to-month basis. Tampa (up 31.8%) narrowly edged Miami (up 31.7%) to remain at the top of the league table for the fifth consecutive month, with Dallas (up 24.7%) holding on to third place.

As has been the case for the last several months, price growth was strongest in the Southeast (up 27.5%) and South (up 26.9%).”

Month-over-month

Before seasonal adjustment, the U.S. National Index posted a -0.3% month-over-month decrease in July, while the 10-City and 20-City Composites both posted decreases of -0.8%.

After seasonal adjustment, the U.S. National Index posted a month-over-month decrease of -0.2%, and the 10-City and 20-City Composites posted decreases of -0.5% and -0.4%, respectively.

In July, only 7 cities reported increases before and after seasonal adjustments.

“As the Federal Reserve continues to move interest rates upward, mortgage financing has become more expensive, a process that continues to this day,” adds Lazzara. “Given the prospects for a more challenging macroeconomic environment, home prices may well continue to decelerate.”

 

 

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