WASHINGTON, July 24, 2023 (GLOBE NEWSWIRE) -- Nationally, prices have now passed the peak level reached in June 2022, according to data from the American Enterprise Institute’s (AEI) Housing Center. National constant-quality home prices in June 2023 were up 0.7% from May 2023 and up 2.9% from a year ago (not seasonally adjusted). While the Year-over-Year (YoY) change is down significantly from March 2022’s record pace of 18.3%, it grew for the first time since March 2022 and is expected to continue rising through August 2023 based on Optimal Blue rate lock data.
YoY HPA varied significantly among the 60 largest metros (see #1 in graphic). It ranged from -7.8% in Phoenix (-10.8% inflation-adjusted) to 8.7% in Milwaukee (+5.7% inflation-adjusted).
Home prices have increased in all of the top 60 metros since their respective recent troughs in either December 2022 or January 2023 (see #2 in graphic). Metros in the Midwest, which continue to be relatively affordable, lead the recovery.
Historically, low price tier HPA has outpaced HPAs for the upper price tiers. This trend continued in June, with the high price tier flat on a YoY basis, while the low price tier increased 6.0% YoY.
June months’ supply has not returned to pre-pandemic levels, signaling the continuation of the strong seller’s market. Months’ supply stood at 3.1 months in June 2023, same as last month but down slightly from 3.4 months in June 2019 (pre-pandemic). (See #3 in graphic). The months’ supply for the low price tier came in at 2.0 months in June 2023, helping to explain the 6.0% YoY price growth for this tier.
The AEI Housing Center provides the most advanced and timely information on home prices available. Measures of home price appreciation like the Case Shiller index have months of lag. The Housing Center has published data for June 2023 and is able to accurately project July and August with Optimal Blue rate lock data as well.
National Home Price Appreciation (HPA) Index – June 2023
Media Contact Details:
Sissi Li
American Enterprise Institute Housing Center
Washington, DC
https://www.aei.org/centers/housing-center/
Sissi.Li@aei.org
203-419-5240
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/87de3d03-4da9-4cd9-a4ba-fb8bd6ab8e9a
