Case-Shiller HPI data in the US suggests housing market resilience.

In June 2023, the metropolitan areas of Chicago, Cleveland, and New York experienced price increases for the fourth consecutive month. Additionally, there was a 3.0% year-over-year appreciation in housing prices across the United States from the second quarter of 2022 to the second quarter of 2023.

Highlights

• The month of June witnessed the continuation of price increases in metropolitan areas for the fourth consecutive month.
• Chicago, Cleveland, and New York emerged as the leaders in annual gains in housing prices.
• Across the United States, housing prices experienced a 3% year-over-year increase and a 1.7% quarter-over-quarter increase.

U.S. Home Price Landscape for June 2023

The latest data from S&P Dow Jones Indices reveals an ongoing increase in home prices in 20 major metro areas, continuing the upward trend for the fourth consecutive month.

Yearly Metrics Show Signs of Stabilization

The national housing market shows a mixed picture. The comprehensive U.S. National Home Price NSA Index remained unchanged in June, a shift from the 0.4% decline observed in May. The 10-City Composite experienced a smaller year-over-year decrease of 0.5%, recovering from the previous month's drop of 1.1%. On the other hand, the 20-City Composite showed a 1.2% annual decrease, but it was slightly better than the projected contraction of 1.5% and an improvement from the previous month's dip of 1.7%.

Leading Cities in Price Growth

Among the 20 cities assessed, Chicago, Cleveland, and New York emerged as the frontrunners in year-over-year gains. Chicago experienced the highest surge with a 4.2% increase, followed closely by Cleveland's 4.1% uptick and New York's 3.4% growth. The situation among the cities was balanced, with half of them reporting annual price reductions while the others witnessed price hikes. Furthermore, 13 cities showed accelerated pricing compared to May 2023.

Trends in the Broader U.S. Housing Market

Supplementary data from the Federal Housing Finance Agency (FHFA) provides a broader perspective. The FHFA House Price Index (HPI®) indicates a 3.0% year-over-year appreciation in U.S. house prices from Q2 2022 to Q2 2023. By June 2023, there was an additional 1.7% quarter-on-quarter growth. Dr. Anju Vajja of FHFA highlighted the surge in prices despite decreasing inventory, with some western states experiencing declining year-over-year figures.

Short-Term Forecast

Overall, the current state of the U.S. housing market appears cautiously optimistic. Despite mixed results on the national and city levels, there is a broader upward trend in house prices, suggesting a mildly bullish stance.