Home prices in the U.S. hit a record high in June on the S&P CoreLogic Case-Shiller U.S. National Home Price Index, climbing 5.4 percent in June compared to a year earlier. In New York, which saw the highest annual gain among the 20 cities analyzed, prices surged nearly twice as fast within the same period.
Home prices in New York rose by 9 percent between June 2023 and June 2023, the nation’s fastest growth rate. The city was followed by San Diego and Las Vegas, which experienced year-over-year gains of, respectively, 8.7 percent and 8.5 percent.
Despite the fact that home prices are still rising nationally, the June data brought some positive news to those concerned about the unaffordability of the U.S. housing market. Compared to May, when the year-over-year price gain was 5.9 percent, the pace of home price growth has slowed down.
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“The S&P CoreLogic Case-Shiller Indices continue to show above-trend real price performance when accounting for inflation,” Brian D. Luke, head of commodities, real & digital assets at S&P Dow Jones Indices, said in a statement.
“While both housing and inflation have slowed, the gap between the two is larger than historical norms,” he added. “Before accounting for inflation, home prices have risen over 1,100 percent since 1974, but have slightly more than doubled (111 percent) after accounting for inflation.”
The 10-city composite annual increase was 7.4 percent in June, down from the year-over-year increase of 7.8 percent in May. The 20-city composite annual increase was 6.5 percent in June, down from 6.9 percent the previous month.
The cities analyzed in the index include Atlanta; Boston; Charlotte, North Carolina; Chicago; Cleveland; Dallas; Denver; Detroit; Las Vegas; Los Angeles; Miami; Minneapolis; New York City; Phoenix; Portland, Oregon; San Diego; San Francisco; Seattle; Tampa, Florida; and Washington D.C.
Month-over-month data also paint a slightly more positive picture for the three cities which reported the highest annual price gains in the country. Between May and June, home prices climbed by 0.6 percent in New York, 0.7 percent in San Diego and 0.8 in Las Vegas. That of the Nevada city was the highest monthly annual gain in the country in June, matched only by Cleveland.
The cities with the lowest annual price gain in the country on the S&P CoreLogic Case-Shiller U.S. National Home Price Index were Portland (0.8 percent), Denver (1.9 percent), and Minneapolis (2 percent).
Newsweek contacted S&P Dow Jones Indices for comment by email on Wednesday morning outside of standard working hours.