U.S. home prices cooled at the fastest rate in the history of the S&P CoreLogic Case-Shiller Index in July, though they remained elevated year-over-year, CNBC reports. Prices rose 15.8% year-over-year in July, a slight decline from an 18.1% annual gain posted in June. While home prices were expected to fall due to strong seasonality in the housing market, a 2.3 percentage point deceleration from June to July was three times the average historical decline.
Metros like Washington, D.C., Minneapolis, and San Francisco saw the most significant deceleration in July, while Tampa, FL, Miami, and Dallas continued to tally the highest annual gains among the report’s 20-City composite.
“July’s report reflects a forceful deceleration,” wrote Craig J. Lazzara, managing director at S&P DJI in a release, noting the difference in the annual gains in June and July. The 2.3 percentage point “difference between those two monthly rates of gain is the largest deceleration in the history of the index.”
The share of homes with price cuts reached about 20% in August, the same as in 2017, according to Realtor.com.
“For homeowners planning to list, today’s market is significantly different than the one from even 3 weeks ago,” said George Ratiu, senior economist and manager of economic research at Realtor.com.