S&P Case-Shiller Home Price Index: Positive Momentum Continues in June
The positive momentum continued in June as home prices for the benchmark 20-city index rose for a fourth consecutive month. The S&P Case-Shiller Home Price Index revealed seasonally adjusted home prices for the 20-city index saw a 0.9% increase month-over-month (MoM) and a 1.2% decrease year-over-year (YoY). After adjusting for inflation, the MoM was reduced to 0.5% and the YoY was reduced to -8.4%.
The seasonally adjusted home prices for the 10-city index saw a 0.9% increase MoM, and a 0.5% decrease YoY. After adjusting for inflation, the MoM dropped to 0.5% and YoY dropped to -7.7%.
The seasonally adjusted home prices for the national index saw a 0.7% increase MoM, and a 0.1% decrease YoY. After adjusting for inflation, the MoM fell to 0.2% and YoY fell to -7.3%.
Here is the analysis from today's Standard & Poor's press release:
"U.S. home prices continued to increase in June 2023," says Craig J. Lazzara, Managing Director at S&P DJI. "Our National Composite rose by 0.9% in June, and it now stands only -0.02% below its alltime peak from exactly one year ago. Our 10- and 20-City Composites likewise each gained 0.9% in June 2023, and stand -0.5% and -1.2%, respectively, below their June 2022 peaks.
"As we've noted previously, the recovery in home prices is broadly based. Prices rose in all 20 cities in June, both before and after seasonal adjustment. Over the last 12 months, 10 cities show positive returns. Otherwise said, half the cities in our sample now sit at all-time high prices.
"Regional differences continue to be striking. On a year-over-year basis, June's three best-performing cities were Chicago (+4.2%), Cleveland (+4.1%), and New York (+3.4%) – the same three that had topped our May leader board. At the other end of the scale, the worst performers continue to be in the Pacific and Mountain time zones, with San Francisco (-9.7%) and Seattle (-8.8%) at the bottom. The Midwest (+2.8%) continues as the nation's strongest region, followed this month by the Northeast (+1.6%). The West (-5.9%) remains the weakest region.
"June is the fifth consecutive month in which home prices have increased across the U.S. With 2023 half over, the National Composite has risen 4.7%, which is slightly above the median full calendar year increase in more than 35 years of data. We recognize that the market's gains could be truncated by increases in mortgage rates or by general economic weakness, but the breadth and strength of this month's report are consistent with an optimistic view of future results."