In June, dwelling worth progress cooled to its slowest tempo in two years, with over a quarter of prime U.S. markets posting annual worth depreciation, in response to the most recent information from Intercontinental Exchange.
The charge of annual progress decelerated to 1.3% throughout the nation in June, falling from 1.6% a month earlier, ICE’s mortgage expertise unit reported in its dwelling worth index. In the identical month one yr in the past, prices had elevated by 4.1%.
Over a quarter, or 27 out of the 100 main markets, posted year-over-year worth depreciation. At the identical time, 33% of markets noticed dwelling values dip by not less than one share level from current highs, ICE stated.
While present numbers might provide some encouraging indicators for aspiring patrons beforehand frozen out of the market on account of excessive affordability challenges, in addition they pose some financial threat to house owners and housing traits at giant.
“There are two competing forces in the housing market proper now,” stated Andy Walden, ICE’S head of mortgage and housing market analysis in a press launch. “Increasing stock ranges are serving to to make houses extra inexpensive, however prices are falling in an growing quantity of markets, and houses are taking longer to promote, which might make householders reluctant to listing.”
Inventory progress additionally various throughout the nation with the South and West seeing greater provide ranges and softening prices. In California, seven out of the highest 10 markets noticed dwelling values lower yr over yr. On the opposite hand, the Northeast and Midwest noticed continued worth progress, though at a moderating tempo.
Falling condominium prices utilized a important quantity of downward strain, with unit values down 1.4% from one yr in the past. Half of U.S. markets posted annual declines in prices, resulting in the weakest apartment market since 2012..
Single-family dwelling prices moderated to progress of 1.6% yr over yr.
Monthly modifications additionally counsel additional worth moderation to come back, ICE stated. Prices got here in nearly flat from May, growing by a seasonally adjusted 0.03% from May.
What is inflicting dwelling prices to fall?
Challenges to inexpensive homeownership from excessive prices and insurance coverage premiums, have helped push buy demand and prices decrease in 2025. The present stage of housing prices are exacerbated by mortgage charges, which have run nicely above 6% for shut to a few years and are unlikely to drop considerably in the close to time period, many housing researchers famous.
Whether present elevated provide ranges are sufficient to spur market exercise stays a query mark, although, particularly if house owners are involved about receiving presents beneath itemizing worth. Housing provide improved in May from a yr earlier, however confirmed little further progress in June, ICE stated.
Many current householders nonetheless have little incentive to listing their houses, notably if their present rate of interest is beneath 4%, a separate research from Bankrate discovered. With the lock-in impact nonetheless in place, solely 2% of mortgage debtors holding sub 4% charges stated they’d be prepared to maneuver in at present’s market.
Bankrate additionally discovered a majority of 54% of present house owners unwilling to promote their houses this yr at any rate of interest stage.
“It’s all the time exhausting to overlook the previous, particularly when the previous contains a reminiscence as dramatic as all-time-low mortgage charges. Most Americans need low mortgage charges to come back again,” stated Jeff Ostrowski, Bankrate housing market analyst.
“But preserve in thoughts, mortgage charges plunge as a result of one thing actually unhealthy is occurring in the financial system.”
Where prices moved essentially the most
Alongside California, different Sunbelt states skilled the best pullback in prices, with Cape Coral, Florida, posting the steepest annual decline at 9.3%, ICE’s report said. Three different Florida cities ranked among the many prime 5, as Cape Coral, Deltona and Tampa joined by Austin, Texas.
On the other facet of the coin, Northeastern U.S. cities noticed the best rise in dwelling prices over the previous yr, as Rochester, New York, led the nation with an 8.1% improve. It was adopted by three Connecticut markets, Hartford, Bridgeport and New Haven, with 7.3%, 7.2% and 6.8%, respectively.
