Source: Sharecast
The closely watched S&P Cotality Case-Shiller 20-city composite index showed house prices were up 2.1% on last year in June, down from the 2.8% increase registered in June.
The growth rate was slightly below the 2.2% expected by economists and the weakest since July 2023.
Across the country as a whole, the national home price index showed growth of 1.9% in June, down from 2.3% in May and also a two-year low. This was the first time in "years" that house price inflation failed to keep pace with the broader consumer price inflation rate (2.7% in June), S&P said.
"This reversal is historically significant," said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices.
"During the pandemic surge, home values were climbing at double-digit annual rates that far exceeded inflation, building substantial real wealth for homeowners. Now, American housing wealth has actually declined in inflation-adjusted terms over the past year – a notable erosion that reflects the market's new equilibrium."
Godec also said the June's modest increase in prices over the past 12 months masks "significant volatility": prices actually fell 0.6% over the first six months, followed by a 2.5% surge over the latter six months.