U.S. home prices increased 0.3% in June compared with May but were up only 1.3% compared with June 2024, the slowest annual growth rate in two years, according to ICE Mortgage Technology’s latest home price index report.
ICE says when it comes to home prices, the market at a critical inflection point. With nearly a third of the 100 largest U.S. markets now showing year-over-year price dips of at least a full percentage point from recent highs, data suggests even more markets may be poised to follow.
Twenty-seven of the 100 largest U.S. markets saw annual price declines in June, a softness not seen since the immediate aftermath of the Fed’s initial rate increases in 2022, the firm says.
Driving the the slowdown in home price appreciation is mortgage rates, which remain stuck in the high 6% range.
The supply of homes available for sale in many markets has been growing, especially in the South and West, easing upward price pressure.
“There are two competing forces in the housing market right now,” says Andy Walden, head of mortgage and housing market research, in the report. “Increasing inventory levels are helping to make homes more affordable, but prices are falling in an increasing number of markets and homes are taking longer to sell, which could make homeowners reluctant to list.”
Half of the 100 largest markets are seeing condo prices below last year’s levels, with the largest declines in Florida, led by Cape Coral at 12.9% and North Port at 11.2%.
Although price growth has slowed in the Midwest and Northeast, prices continue to press higher in all major markets across those two regions, ICE says.
Rochester, N.Y. led all major markets in early June with prices up 8.1% from the same time last year, followed by Hartford (7.3%), Bridgeport (7.2%), and New Haven (6.8%) Conn., Scranton, Pa. (6.7%), and New York, N.Y./Newark, N.J. (6.2%).
Photo: Phil Hearing