Home prices across the United States are rising at a slower pace as housing affordability worsens.
The latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index released Tuesday shows a 6% annual gain in July, down from the 6.2% rise in June.
The 10-City Composite annual increase was 5.5%, down from 6.0% in the previous month and the 20-City Composite posted a 5.9% year-over-year gain, down from 6.4% in the previous month.
“Rising homes prices are beginning to catch up with housing,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices.
He said that the slowing is widespread with 15 of 20 cities showing smaller monthly increases in July 2018 than in July 2017.
Sales of existing single family homes have dropped each month for the last six months and are now at the level of July 2016.
Housing starts rose in August due to strong gains in multifamily construction.
“The index of housing affordability has worsened substantially since the start of the year,” he said.
There are some markets where prices just won’t slow down. Las Vegas led the way in July with a 13.7% year-over-year price increase, followed by Seattle at 12.1%, and San Francisco at 10.8%.