S&P: Home Price Appreciation Slows

Home price appreciation slowed slightly in June, according to the S&P CoreLogic Case-Shiller Indices.

The report showed a 6.2% annual gain in June, down from 6.4% in May. The 10-City Composite annual increase slowed to 6.0%, down from 6.2% in May. The 20-City Composite posted a 6.3% year-over-year gain, down from 6.5% in May.

Month over month, the national index posted an 0.8 percent gain in June, before seasonal adjustment. The 10- and 20-City Composites posted increases of 0.4% and 0.5%, respectively. After seasonal adjustment, the National Index posted an 0.3 percent increase in June; the 10- and 20-City Composites posted 1.0 percent increases.

Las Vegas, Seattle and San Francisco continued to report the highest year-over-year gains among the 20 cities. In June, Las Vegas led the way with a 13.0% year-over-year price increase, followed by Seattle with a 12.8% increase and San Francisco with a 10.7% increase. Six of the 20 cities reported greater price increases in the year ending June from a year ago. On a month over month basis, 19 of 20 cities reported increases in June before seasonal adjustment, while 17 of 20 cities reported increases after seasonal adjustment.

David Blitzer, Managing Director and Chairman of the Index Committee with S&P Dow Jones Indices, noted while home prices continued to rise in June, signs of growth appears to be easing.

“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,” Blitzer said. “Rising mortgage rates-30-year fixed-rate mortgages rose from 4% to 4.5% since January–and the rise in home prices are affecting housing affordability.”

The report said as of June, average home prices for metros within the 10-City and 20-City Composites are back to their winter 2007 levels.