"What makes this deceleration particularly noteworthy is the underlying pattern: The modest 1.9% annual gain masks significant volatility, with the first half of the period showing declining prices (-0.6%) that were more than offset by a 2.5% surge in the most recent six months, suggesting the housing market experienced a meaningful inflection point around the start of 2025, Godec said in a statement."
"For the first time in years, home prices are failing to keep pace with broader inflation. From June 2024 to June 2025, the Consumer Price Index climbed 2.7%, substantially outpacing the 1.9% gain in national home prices. This reversal is historically significant: During the pandemic surge, home values were climbing at double-digit annual rates that far exceeded inflation, building substantial real wealth for homeowners."
National home prices rose 1.9% year-over-year in June to 331.52, down from a 2.3% annual gain in May and the slowest pace since summer 2023. Month-over-month the national index declined 0.3% after seasonal adjustment. The 10-city composite increased 2.6% annually to 362.65 while the 20-city index rose 2.1% to 342.90, both moderating from May and falling modestly month-to-month. The first half of the period showed a 0.6% decline followed by a 2.5% surge in the most recent six months, indicating an inflection point around early 2025. Nationwide, home-price gains lagged the 2.7% CPI rise, reducing inflation-adjusted housing wealth.
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