Real estate prices in the US have reached a new record high, but are rising at a slower pace.
The latest S&P CoreLogic Case-Shiller index of national home prices, released on Tuesday, hit a historic high in June, rising 5.4 percent year-on-year, compared to an increase of 5.9 percent in the previous month.
“This is the lowest rate of increase in home prices since November 2023, but still notable given that home prices are at a record high and mortgage rates were still around 7% in June,” says Bright MLS chief economist Lisa Sturtevant. “Upward pressure on housing prices is making this housing market the most unaffordable in history. First-time and middle-income buyers in particular are increasingly being shut out of the housing market.”
Case-Schiller’s composite housing price indices for the United States’ 10 and 20 largest cities also hit record highs in June, normally the seasonal peak in prices.
“We expect home price growth to slow somewhat,” says Realtor.com®’s chief economist Danielle Hale“Even though the number of homes for sale is 30% below 2017-2019 levels, the number of home sales has remained quite low.”
Realtor.com’s economic research team forecasts home prices to increase by just 4.6% for the 12 months ending December 2024, suggesting that price growth will continue to slow.
The story will continue to develop, so check back later for updates.
