The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the country, rose 18% in the year to June, down from 19.9% the previous month.
The housing market has cooled in recent months, with existing-home sales falling for six months in a row through July. Higher mortgage interest rates make it more difficult for buyers to qualify for loans, driving some out of the market. According to Freddie Mac, the average rate on a 30-year fixed-rate mortgage was 5.55% in the week ended Aug. 25, up from 2.87% a year earlier.
Economists predict that home-price growth will slow significantly by the end of the year, but prices remain high compared to a year ago. The Case-Shiller index, which measures repeat sales, has a two-month lag and a three-month moving average. Because homes typically go under contract a month or two before closing, the June data reflects purchases made earlier in the year.
According to the National Association of Realtors, the median existing-home price increased 10.8% year on year in July to $403,800.
"Inventory is growing, homes are staying on the market longer, and buyers are gaining more negotiating power, including on price," said Lisa Sturtevant, Bright MLS's chief economist. "Overall home prices will continue to rise, but the rate of growth in home prices will slow."
The Case-Shiller 10-city index rose 17.4% year on year in June, compared to a 19.1% rise in May. The 20-city index rose 18.6% after rising 20.5% year on year in May. In 19 of the 20 cities, price growth has slowed.
The Wall Street Journal polled economists, who predicted a 19.4% increase in the 20-city index.
Tampa had the country's fastest home-price growth, at 35%, followed by Miami, at 33%.
A separate measure of home-price growth released Tuesday by the Federal Housing Finance Agency found a 16.2% increase in June from the previous year.