U.S. home prices grow at slightly weaker pace in June
The S&P/Case-Shiller 20-city home composite index rose 0.7% in June, down from May’s 0.9%. When adjusted for seasonal factors, home prices grew a much-smaller 0.1% from the previous month, undershooting market expectations of a 0.3% rise.
On a yearly basis, home prices growth in June mirrored May’s 5.7% increase. Of the 20 cities in the index, Seattle, Portland and Dallas recorded the sharpest annual increases, while Cleveland and Washington saw the weakest price growth.
The housing market continues to benefit from a healthy labor market, which is keeping affordability high in spite of rising real estate prices.
Price pressures largely stem from a tight real estate market, where the number of homes for sale and the number of days homes stay on the market have declined steadily in recent years.
The months’ supply of existing homes for sale is low, at 4.2 months, and housing starts remain below their pre-financial crisis peak. ■