- Home price growth slowed earlier than expected during the summer.
- A number of markets are still seeing above-average appreciation on a year-over-year basis.
- It appears the last markets to recover -- ones in the Midwest, along with Las Vegas and Southern California's Inland Empire -- have done so.
Spanning June to July, U.S. home prices rose by only 0.2 percent, breaking a five-month streak where 1.1 to 1.3 percent gains occurred.
July’s month-over-month increase falls short of what is typically expected for the end of the summer homebuying season.
“It marks one of the weakest June-to-July seasonal growths since the housing market upturn in the past 3 1/2 years,” according to FNC Residential, which just released its monthly home price index.
The fact that home prices are already showing signs of retreat is a reminder there remains a great deal of uncertainty in the market, FNC added.
Markets that saw the largest month-to-month drop in home prices included:
- Cincinnati (-2.4 percent)
- Tampa (-2.4 percent)
- San Francisco (-2.2 percent)
- Columbus, Ohio (-2.2 percent)
- San Diego (-1.7 percent)
- San Antonio (-1.1 percent)
Month-over-month home prices dropped by 0.1 to 0.9 percent in a number of other markets:
- Las Vegas
- New York
Chicago and Riverside, California, saw minimal 0.1 percent growth.
The top-performing markets in July, in terms of home price appreciation, were St. Louis (2.6 percent increase), Cleveland (1.9 percent) and Detroit (1.6 percent).
“Since the market’s recovery in early 2012, this region (the Midwest) has not seen the kind of strong price rebound that has happened in many previously hard-hit cities,” said Yanling Mayer, housing economist and director of research at FNC.
Despite the slowdown in July, home prices nationally gained 5.5 percent on a year-over-year basis, with 19 markets at or above the national average.
Five markets have seen double-digit, year-over-year growth:
- Dallas (14.3 percent)
- Orlando (13.2 percent)
- Miami (12 percent)
- Las Vegas (12.6 percent)
- Portland (10.3 percent)
According to FNC, the best-performing markets in the ongoing recovery are Phoenix, Las Vegas, Sacramento, Orlando and Riverside.