U.S. home prices increased in June – however, the rate of appreciation slowed significantly.
Home prices (including distressed sales) increased 0.6% compared with May and were up 18.3% compared with June 2021, according to CoreLogic’s home price index.
It was the second consecutive month that home price appreciation slowed, CoreLogic’s data show.
Still, eight states continued to see annual gains exceeding 20%.
CoreLogic projects that year-over-year appreciation will drop to 4.3% by June 2023, bringing home price growth close to the long-run average from 2010 to 2020.
“Signs of a broader slowdown in the housing market are evident, as home price growth decelerated for the second consecutive month,” says Selma Hepp, interim lead of the office of the chief economist at CoreLogic. “This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates and the resulting increased cost of homeownership. Nevertheless, buyers remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced.”
In June, annual appreciation of detached properties (18.7%) was 2.1 percentage points higher than that of attached properties (16.6%).
Once again, Tampa, Florida logged the highest year-over-year home price increase of the country’s 20 largest metro areas in June, at 32.6%, while Phoenix retained the second slot at 26.1%.
