US home prices fall: U.S. single-family home prices fell in June, leading to the smallest annual increase in nearly a year, as higher mortgage rates pushed buyers to the back burner and boosted housing supply.
House prices fell 0.1 percent month-on-month after remaining unchanged in May, the Federal Housing Finance Agency said on Tuesday. They rose 5.1 percent in the 12 months through June, the smallest year-on-year increase since July 2023, after advancing an upwardly revised 5.9 percent in May. The annual increase in house prices was previously reported to have been 5.7 percent in May.
Prices rose by 0.9% in the second quarter compared to the January-March quarter. Between the second quarter of 2023 and the April-June quarter of this year, they rose by 5.7%.
“U.S. home prices experienced the third consecutive slowdown in quarterly growth,” said Anju Vajja, deputy director of FHFA’s division of research and statistics. “The slower pace of appreciation in late June was likely due to a higher inventory of homes for sale and elevated mortgage rates.”
House price inflation is likely to moderate further in the coming months as the supply of new homes has increased to levels last seen in early 2008. The inventory of existing homes has also risen to the highest level in nearly four years.
However, housing prices are unlikely to decline sharply without a significant deterioration in the labor market. The decline in mortgages, with the Federal Reserve expected to begin its cycle of interest rate cuts next month, should boost demand and absorb some of the excess inventory.
All nine census tracts saw annual increases in home prices in June, with large increases in the Mid-Atlantic, North Central East, New England and South East areas. Prices in the South Central West region lagged behind with a 2.7 percent increase.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.