“This marks the weakest annual gain in over two years and falls well below the 3% inflation rate. For the fourth straight month, home values have lost ground to inflation, meaning homeowners are seeing their real wealth decline even as nominal prices inch higher.”
Godec added, “The National Index rose 1.5% over the past year, with most of that gain coming in the recent six months (up 1.5%) while the prior six months were essentially flat. The 20-City Composite gained 1.6% annually and the 10-City rose 2.1%, both continuing their deceleration from earlier in the year.”
Regional divergence widens as Midwest and Northeast outperform
Chicago, New York, and Cleveland led the pack with annual gains of 5.9%, 6.1%, and 4.7%, respectively.
Meanwhile, pandemic boomtowns like Tampa, Phoenix, and Miami posted the steepest declines, with Tampa falling 3.3% year-over-year, Phoenix down 1.7%, and Miami off 1.7%.
Western markets such as San Francisco, Denver, and San Diego also saw prices slip.