For the third straight month home prices increased at a slower pace.
Standard & Poor’s said Tuesday that its S&P CoreLogic Case-Shiller national home price index reported a 6.2% annual gain in June, down from 6.4% a month earlier. The 20-City Composite posted a 6.3% annual gain, missing analysts’ expectations of 6.4% and down from 6.5% in May. It was the slowest monthly increase in two years for the 20-City index.
Home prices have been the only market indicator that has been on the rise as existing and new home sales have slipped. The index results are in-line with a report released last week by the Federal Housing Finance Agency showing that home prices rose 1.1% in the second quarter from the previous quarter — the smallest gain in four years.
“As home prices keep climbing, we are seeing signs that growth is easing in the housing market,” said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices, in a statement. “Sales of both new and existing homes are roughly flat over the last six months amidst news stories of an increase in the number of homes for sale in some markets.”
Sales of existing home sales fell for the fourth straight month in July to the slowest pace since early 2016, while purchases of new homes unexpectedly dipped to the weakest pace in nine months.
Las Vegas tops Seattle
For the first time in about three years, Las Vegas unseated Seattle as the city to post the biggest annual price gain. Vegas led the 20-City Composite with a 13% year-over-year price increase. Seattle, which recorded a 12.8% increase, has been the market with the fastest growth price increase since 2015.
“Population and employment growth often drive homes prices. Las Vegas is among the fastest growing U.S. cities based on both employment and population, with its unemployment rate dropping below the national average in the last year,” said Blitzer.
Amanda Fung is an editor at Yahoo Finance.
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