The S&P Dow Jones Indices released housing price data that showed the U.S. National Index fell 0.9% in August.
“The forceful deceleration in U.S. housing prices that we noted a month ago continued in our report for August 2022,” said Craig J. Lazzara, managing director at S&P DJI. “For example, the National Composite Index rose by 13.0% for the 12 months ended in August, down from its 15.6% year-over-year growth in July. The -2.6% difference between those two monthly rates of change is the largest deceleration in the index’s history (with July’s deceleration now ranking as the second largest).
“These data show clearly that the growth rate of housing prices peaked in the spring of 2022 and has been declining ever since,” he added.
The price drop comes after a significant rise in home prices in the past year. Some U.S. cities have seen major price increases, driven partly by inflation, but now those soaring prices have slowed or reversed in even the hottest housing markets.
“Miami, Tampa, and Charlotte reported the highest year-over-year gains among the 20 cities in August,” the group said. “Miami led the way with a 28.6% year-over-year price increase, followed by Tampa in second with a 28.0% increase, and Charlotte in third with a 21.3% increase. All 20 cities reported lower price increases in August 2022 versus the year ending July 2022.”