U.S. housing prices grew year-over-year in July, albeit just barely, Dow Jones S&P Indices said Tuesday. The release of the latest S&P Cotality Case-Shiller Indices showed that prices rose 1.7% Y-O-Y nationally for the month, down from 1.9% annual growth in June and one of the weakest annual price increases in the past decade.
“U.S. home values have essentially stagnated after inflation, marking the third straight month of real housing wealth decline for homeowners,” said Nicholas Godec, head of fixed income tradables & commodities at S&P Dow Jones Indices. “This reversal is striking: during the pandemic boom, home prices were climbing far faster than inflation, rapidly boosting homeowners’ real equity. Now, the situation has flipped – over the past year, owning a home yielded a modest nominal gain, but an inflation-adjusted loss.”
Northeast and Midwestern markets now lead in home price growth, with New York City the front-runner. By contrast, some formerly hot West Coast and Sunbelt markets are now seeing annual declines.
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