Steel Markets

Case-Shiller Index Shows Rising Home Prices in June

August 26, 2020

Home prices rose 4.3 percent in the June S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, matching the annual gain in May.

The 20-city composite posted a 3.5 percent gain, slipping slightly from 3.6 percent in the previous month. Phoenix, Seattle and Tampa led the increases with year-over-year gains of 9.0 percent, 6.5 percent and 5.9 percent, respectively. Due to COVID-19-related delays, no data was reported for the Detroit metro area. Of the 19 cities reporting, five cities reported higher annual gains in June.

On a month-over-month basis, the 20-City composite increased 0.2 percent.

“Housing prices were stable in June,” says Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices. “More data will be required to understand whether the market resumes its previous path of accelerating prices, continues to decelerate or remains stable. That said, it’s important to bear in mind that deceleration is quite different from an environment in which prices actually fall.”

Although home prices keep climbing, low mortgage rates are enticing potential buyers who base purchases on monthly payments rather than overall price. With demand high, inventory low and prices continuing to rise, some analysts suggest affordability will become a greater concern.