Us House Prices Down In June

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Us House Prices Down In June

Us House Prices Down By 0.1% In June

According to the latest data from the Federal Housing Finance Agency, the price of single-family homes in the USA declined in June.

Overall, the annual increase in house prices was the smallest in a year. It seems that the higher mortgage rates have pushed a lot of buyers to the sidelines. This also led to an increase in the housing supply and lower prices.

In June, a 0.1% decline was seen in the house prices on a m/m basis. In May, the reading remain changed, which shows that higher rates have also affected the real estate sector.

Increased Inventory Of Available Homes

If we look at the increase during the 12 months (ending in June), it is around 5.1%. Once again, this was a small increase in terms of y/y.

According to one expert, that's the 3rd slowdown in a row for the US house prices. They added that the reason for this slower growth in house prices is due to higher mortgage rates and an increased inventory of homes available for sale.

The house price inflation will likely go down in the nxt few months as the number of new houses has already reached record levels. To put things into perspective, these levels were only seen during 2008, and at that time, it led us to a full-fledged financial crisis.

But it doesn't mean that we will see a major decline in house prices as long as we don't see any major deterioration in the labour market. The mortgage rate will also start to go down once the Federal Reserve starts its rate-cutting cycle.

The Federal Reserve's rate cut will boost the demand for houses and lead to a moderate decline in inventory. Overall, 9 regions recorded an increase in annual house prices, but the pace of growth was minimal.

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