US home prices continued to gain ground in August, but the pace of growth slowed considerably as rising mortgage rates pushed more prospective buyers out of the market.
Home prices rose 13% in August from the year before, a smaller jump than the 15.6% growth seen in July and 18.1% pace in June, according to the S&P CoreLogic Case-Shiller US National Home Price Index. The drop between July and August was the largest deceleration in the history of the index, surpassing the previous record a month prior.
July also marked the first month-over-month decrease for the national index since February 2012 and that continued August, with seasonally adjusted prices falling 0.9% month-over-month.
“These data show clearly that the growth rate of housing prices peaked in the spring of 2022 and has been declining ever since,” said Craig J. Lazzara, managing director at S&P Dow Jones Indices.
All 20 cities tracked by the index reported smaller price increases in August compared to the prior year.
Miami notched the biggest gains, with home prices rising 28.6% in August from the year before. It was followed by Tampa, which was up 28%, and Charlotte, with a 21.3% increase.
This is a developing story and will be updated.