The 20-City Case-Shiller Composite gained 5.0 percent year-over-year in June, consistent with May’s gain. The 10-City Composite gained 4.6 percent from the previous year, marginally lower than the year-over-year gain in May. The National Index recorded a 4.5 percent year-over-year gain for the month, compared to a 4.4 percent gain in May.
On a monthly basis, the National Index and 20-City Composite reported gains of 1.0 percent, while the 10-City Composite posted a 0.9 percent gain.
“While prices in San Francisco and Denver are rising far faster than those in Washington DC, New York, or Cleveland, the city-to-city price patterns are little changed in the last year,” said David M. Blitzer, Managing Director and Chairman of the Index Committee. “Two possible clouds on the horizon are a possible Fed rate increase and volatility in the stock market. A one quarter-point increase in the Fed funds rate won’t derail housing. However, if the Fed were to quickly follow that initial move with one or two more rate increases, housing and home prices might suffer,” added Blitzer.
As home prices continue to exceed the rate of both inflation and wage growth, there have been some indications that demand has been affected, with the National Association of Realtors noting that foot traffic has decreased in some markets due to lower inventory and higher prices.
The FHFA seasonally adjusted U.S. House Price Index rose 0.2 percent from May to June. Home prices in the second quarter of 2015 rose 1.2 percent from the previous quarter and 5.4 percent from the second quarter of 2014. Home prices rose in every state from the second quarter 2014 to the second quarter 2015; the highest annual price increases were in Colorado, Nevada, Florida, Hawaii and Washington.
The FHFA HPI is calculated using home sales information from mortgages sold to and from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.