Real estate prices are rising fastest in these three cities

Home prices in the United States hit a record high on the S&P CoreLogic Case-Shiller US National Home Price Index in June, rising 5.4 percent year-on-year in June. In New York, which saw the highest annual increase of the 20 cities analyzed, prices rose nearly twice as fast over the same period.

New York City real estate prices rose 9 percent between June 2023 and June 2023, the fastest growth rate in the country. The city was followed by San Diego and Las Vegas, which saw year-over-year increases of 8.7 percent and 8.5 percent, respectively.

Although home prices are still rising nationwide, June's data brought positive news to those concerned about the unaffordability of the U.S. housing market. The pace of home price growth has slowed compared to May, when year-over-year price increases were 5.9 percent.

“The S&P CoreLogic Case-Shiller indices continue to show above-trend real price performance when accounting for inflation,” said Brian D. Luke, head of commodities, real and digital assets at S&P Dow Jones Indices, in a statement.

“While both housing construction and inflation have slowed, the gap between the two is wider than has been typical in the past,” he added. “Before accounting for inflation, home prices have risen by over 1,100 percent since 1974, but have risen just over doubled (111 percent) after accounting for inflation.”

The total annual increase for the 10 cities was 7.4 percent in June, below the previous year's figure of 7.8 percent in May. The total annual increase for the 20 cities was 6.5 percent in June, below the previous month's figure of 6.9 percent.

Cities analyzed in the index include Atlanta, Boston, Charlotte (North Carolina), Chicago, Cleveland, Dallas, Denver, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, New York City, Phoenix, Portland (Oregon), San Diego, San Francisco, Seattle, Tampa (Florida) and Washington DC

The monthly data also paint a slightly more positive picture for the three cities that recorded the highest annual price increases in the country. Between May and June, real estate prices rose 0.6 percent in New York, 0.7 percent in San Diego and 0.8 percent in Las Vegas. The Nevada city's price increase in June was the highest in the country, surpassed only by Cleveland.

The cities with the smallest annual price increases in the country in the S&P CoreLogic Case-Shiller US National Home Price Index were Portland (0.8 percent), Denver (1.9 percent) and Minneapolis (2 percent).

Newsweek S&P Dow Jones Indices emailed for comment outside normal business hours Wednesday morning.