by Calculated Risk on 6/02/2025 02:01:00 PM

Today, in the Real Estate Newsletter: June ICE Mortgage Monitor: Home Prices Continue to Cool

Brief excerpt:

House Price Growth Continues to Slow

Here is the year-over-year in house prices according to the ICE Home Price Index (HPI). The ICE HPI is a repeat sales index. ICE reports the median price change of the repeat sales. The index was up 2.0% year-over-year in April, down from 2.4% YoY in March. The early look at the May HPI shows a 1.6% YoY increase.

• Improved inventory levels are providing more options and a softer price dynamic for homeowners shopping this spring

• Annual home price growth cooled to a revised +2.0% in April from +3.6% at the start of the year, with ICE’s Home Price Index suggesting price growth cooled further to +1.6% in May, the slowest growth rate in nearly two years

• May data also shows home prices rose by a modest 0.1% in the month on a seasonally adjusted basis, which would mark the softest single-month growth since late 2023, when mortgage rates climbed above 7.5%

• If recent seasonally adjusted gains persist, the annual home price growth rate is poised to cool further

• Single family prices were up by +1.9% in May from the same time last year, with condos down -0.7% as signals of a softer condo market grow louder

• Condo prices are now down from last year in half of all major U.S. markets, with the largest declines along Florida’s Gulf Coast, plus Stockton CA, Austin, Memphis and Denver

There is much more in the newsletter.