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.

  • 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.

res-price-index-july15

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)
San Francisco image via Shutterstock.

San Francisco image via Shutterstock.

Month-over-month home prices dropped by 0.1 to 0.9 percent in a number of other markets:

  • Seattle
  • Atlanta
  • Portland
  • Las Vegas
  • New York
  • Charlotte
  • Baltimore
  • Sacramento

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).

Linda Parton / Shutterstock.com

Linda Parton / Shutterstock.com

“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.

Email Erik Pisor.

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