As slowing price growth entered its 15th month, the latest S&P CoreLogic Case Shiller National Home Price Index indicated that home prices grew by +3.1% in June 2019.
Even San Francisco inched its way towards seeing home prices drop for the first time since 2012. Its price growth registered only +0.7% in June. And Seattle saw its home prices drop for the third consecutive month.
Meanwhile, inventories rose to a 3.3-month supply, up from a 2.8-month supply in June 2018, according to CoreLogic. The lowest price tier had a 3.5-month supply, approximately one-third its peak in January 2008. The low-middle price tier had a 2.6-month supply in June 2019, approximately one-fifth of its January 2009 peak. The middle-moderate tier had a 2.8-month supply, approximately one-fifth its January 2009 peak. And the high price tier had a 3.9-month supply, approximately one-fourth of its January 2009 peak.
Nationwide, inventory supplies increased +7.5% year/year in June 2019. Of the 20 metros in CoreLogic’s 20-City Composite, 18 metros showed increases in their respective month’s supply. Miami had the largest supply increase from 7.7-months in June 2018 to 9.8-months in June 2017. Only Tulsa and San Diego had more supply last year.
The obvious question…why haven’t falling mortgage interest rates impacted sales and/or pricing?
Homebuyers tend to base their decisions on more factors than rates, according to Ralph McLaughlin, CoreLogic’s senior economist. “Life cycle events such as marriage, children, divorce, retirement and having enough money saved for a down payment are more impactful to prospective homebuyers than rates.”
Thanks to Ralph McLaughlin and Shu Chen of CoreLogic for source data.