Home prices across the nation continued to climb in June, even as more prospective buyers decided to sit on the sidelines.
The S&P CoreLogic Case-Shiller Indices rose 5.1 percent in the 12 months ended in June, the Wall Street Journal reported. That was the same increase reported a month earlier in May.
The 10-city index – which covers places like New York City, Los Angeles and Miami – climbed 4.3 percent on the year, a slight dip from the 4.4 percent increase recorded in May.
The 20-city index – which adds like Atlanta, Dallas, and Portland, Ore., into the mix – recorded a gain of 5.1 percent in June, down from May’s 5.3 percent jump.
Over the past two years, home prices have grown around 5 percent “without any signs of slowing,” said David Blitzer, managing director of S&P Down Jones Indices.
As pricing continues to grow, however, the number of homes trading hands is down as buyers express concerns over affordability.
The pace of existing home sales dropped 3.2 percent in July from the previous month, according to the National Association of Realtors.
Economists are expecting that demand will continue to cool through the second half of the year, which will likely result in a chilling effect on price growth. [WSJ] – Rich Bockmann