Home prices rose slightly in June, continuing the trend of growth that is slower than overall inflation.
New data from Homes.com revealed home prices rose 1.3% in June compared to the same time a year earlier. In number terms, the median price for all homes — including single-family properties, townhouses and condos — increased roughly $5,000 to $395,000.
That’s a higher increase than May — when prices grew just 1% — but it is still lower than December when growth peaked at 5.6%. And compared to historical data about the June housing market, it’s a more moderate change than usual. What's more, it was lower than the rate of inflation as a whole, which rose 2.7% in June, according to the Consumer Price Index.
The broader trend in home price growth indicates a shift toward a market where buyers could have more negotiating power and choice, but that has yet to materialize. Erika Ludvigsen, national director of residential analytics at Homes.com, said it’s partly because of “the ongoing mismatch between supply and demand.”
“While inventory has improved, affordability remains a major constraint, keeping many would-be buyers on the sidelines,” she told Homes.com. “This combination is putting downward pressure on prices in several markets, especially those that saw the steepest run-ups during the pandemic.”
Price growth remains resilient in Midwest and Northeast
Ludvigsen also noted that on a regional level, there’s a “clear divergence” in market conditions.
“The Midwest and parts of the Northeast are still experiencing solid price growth, while many Sun Belt metros are seeing year-over-year declines due to elevated inventory and softer demand,” she said.
Indeed, three of the five metropolitan markets that saw the steepest home appreciation in June — Milwaukee, Cleveland and Cincinnati — are all in the Midwest.
On the opposite end of the growth spectrum, though, 11 markets saw prices stall or decline. In Raleigh, North Carolina, and Denver, the median home price in June was unchanged from a year earlier.
Meanwhile, Jacksonville, Florida; San Diego; Tampa, Florida; and Atlanta all saw their prices fall more than 2%.