US home price growth continues to outpace inflation in June

27th Aug 2024 14:15

(Sharecast News) - US home price growth continued to outpace inflation in June, according to the S&P/Case Shiller US home price index, rising 0.4% month-on-month.

However, the report also revealed that home prices in the 20 major US metropolitan markets were up 6.5% year-on-year, cooling from May's 6.9% increase but ahead of expectations for a reading of 6.3%.

The national index, a broader measure of home prices, rose 0.2% month-on-month and 5.4% year-on-year to an all-time high.

"The S&P CoreLogic Case-Shiller Indices continue to show above-trend real price performance when accounting for inflation," said S&P's Brian Luke. "Home prices and inflation continue to factor into the political agenda coming into the election season. While both housing and inflation have slowed, the gap between the two is larger than historical norms, with our national index averaging 2.8% more than the consumer price index. That is a full percentage point above the 50-year average. Before accounting for inflation, home prices have risen over 1,100% since 1974, but have slightly more than doubled (111%) after accounting for inflation."

Reporting by Iain Gilbert at Sharecast.com