U.S. home prices rose in June, as demand to purchase homes outpaced the supply of for-sale listings.

The S&P CoreLogic Case-Shiller 20-city house price index rose 0.9% in June, as compared to the previous month.

Nationally, year-over-year in June house prices were down 1.2%. Home prices grew the most on an annual basis in Chicago, Cleveland, and New York.

A broader measure of home prices, the national index, rose month-over-month in June by 0.7%, but was flat over the past year. All numbers are seasonally adjusted.

Despite mortgage rates being over 7%, buyer demand hasn't fully dried up. And a persistent lack of home listings has pushed up home prices, as buyers converge on a limited number of homes on the market. Bidding wars are back in some markets, while others are seeing an uptick in all-cash buyers, hoping to avoid high borrowing costs.

Chicago, Cleveland and New York led the rankings as the top three cities with the highest year-over-year price gains among the top 20 cities in June.

Homes in Chicago gained 4.2% in June 2023 as compared to last year.

The West coast continued to lag behind the rest of the country: Home prices fell in San Francisco and Seattle the most.

A separate report from the Federal Housing Finance Agency also showed home prices rising in June, up 0.3% from May. Home prices were the strongest in New England, according to the government's data.

And over the last year, the FHFA index was up 3.1%. The agency also said that home prices rose 3% between the second quarters of 2022 and 2023.

Source : Marketwatch