In July, home prices went through the roof, even though interest rates went up.
The S&P CoreLogic 20-city housing index went up 0.9% in July, which is the sixth month in a row that prices have gone up.
Prices for homes are 0.1% higher than they were a year ago. In the previous month, they were down 1.2% on a annual basis. July saw the index reach a new all-time high.
People think that the 20-city housing index is the best way to measure home prices.
Prices in the 10 biggest U.S. cities, which make up the narrower measure, went up 0.8% in July. The 10-city measure is up 0.9% from the same time last year. A month ago, the index showed that prices were going down by 0.5% annually.
The national measure as a whole went up by 0.6% in July, when seasonally adjusted. The index shows that prices are 1% higher than they were a year ago. This is up from 0% a month ago.
In July, both the 10-city index and the national index hit new all-time highs.
“As we previously said, house prices reached their highest point in June 2022 and then started to decline by 5.0% over the next seven months, ending in January 2023. Prices started going up in January and have now offset the earlier drop. This means that July has reached the National Composite’s all-time high. Also, this rise in housing prices is happening all over the country. Ten of the twenty places we looked at have hit all-time highs, just like they did last month. Prices went up in all 20 cities in July, even after taking into account the seasonal adjustments, and in 19 of them prior to the adjustments,” Craig J. Lazzara, Managing Director at S&P DJI said.
All three measures were up a strong 0.6% month-over-month in July, even before seasonal changes.
During the month of July, home prices went up the most in the Midwest.
A different assessment from the Federal Housing and Finance Agency said that home prices went up 0.8% from June to July. According to the FHFA’s measure, home prices have gone up 4.4% since last year.
Lazzara said, “The market’s increases could be cut short by rising mortgage rates or by the general weakness of the economy, but the range and strength provided by this month’s report support a positive view of future results.”
A lack of homes for sale by owners is likely one reason for the rise in home prices. Many people who already have mortgage locked in rates that are much lower than those offered for new loans. This makes a lot of homeowners feel like they are tied to their present house.
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