There were signs of change in US housing prices. That’s according to the July index compiled by S&P Corelogic/Case-Shiller.
Nationwide home price growth (15.8%) slowed 2.3 percentage points from the previous month (18.1%), according to Craig Lazzara, managing director of data publisher S&P Dow Jones Indices. The width of the slowdown is the largest since the start of statistics.
House prices are still rising on a nationwide level compared to the same month last year, but there are signs that rising mortgage interest rates are cooling down the property-buying fever seen in the COVID-19 pandemic. The price index for 20 cities fell 0.4% from the previous month, marking the first negative since 2012.
“The cooling down was severe and came quickly,” Stephen Stanley, chief economist at Amherst Pierpont, wrote in a report.
Mortgage rates have doubled this year, dampening the housing market. House prices fell 3.6% month-on-month in San Francisco, 2.5% in Seattle and 2% in San Diego. New York was largely flat.
“As the Fed continues to raise interest rates, mortgage financing has become more expensive and continues to do so,” Lazzara said in a statement. “Given the likely challenging macroeconomic environment, house prices are likely to continue on a downward trend,” he wrote.
Original title:Home-Price Deceleration Is Fastest on Record as US Market Cools (excerpt), S&P CoreLogic Case-Shiller 20-City Index Up 16.1% Y/Y; Est 17.1% (excerpt)
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