The housing market is no longer an engine to build wealth as home prices fell

This is because even as home prices continue around record levels, they also decline and fail to inflation, which rose amid President Donald Trump’s tariff.

“For the first time in years, home prices fail to keep pace with the wider inflation,” Nicholas said.
Goodyc, head of tracks and fixed income in S&P Dao Jones indicators, in a A statement on Tuesday. The last time it happened was in mid -2013.

The latest home price data in the case of the S&P Case-Shiller showed that the 20-cities index decreased by 0.3 % in June of the previous month, which represents the monthly decrease in a row.

On an annual basis, the 20 -cities compound increased by 2.1 %, a decrease from an increase of 2.8 % in the previous month, and the national index witnessed an annual profit by 1.9 %, a decrease from 2.3 %. Meanwhile, the consumer price index increased by 2.7 % in June last year.

Godec added: “This reflection is historically important: during the increase of the epidemic, the values ​​of the house were climbing at annual rates of two number that exceeded inflation much, and building a great real wealth for home owners.” “Now, the wealth of American housing has already decreased in modified terms over the past year-a noticeable erosion that reflects the new balance in the market.”

He said that the weak prices indicate that the basic demand for housing is still silent, although spring and summer are historic, the peak period of the house.

In fact, this year’s sale season was a bust. Although current homes have increased recently, they are still defeated and the prices are flat. In addition, new homes sales decreased with low prices.

The circumstances were so terrible that the chief economist in Moody Mark Zandy analyzes The alarm appeared in the housing market Even the highest voice last month.

From GodC’s point of view, the recent transformation in the housing market can represent a new nature – but also contains a positive angle.

“Looking forward, this housing cycle maturity seems to settle around the growth of inflation
Instead of the wealth building engine in recent years. ”

This is that the hot points that belong to the epidemic in the sun belt have increased with the demand for well -known industrial centers that have sustainable basics such as labor growth, increased ability to withstand costs, and favorable renading.

“While this represents a loss of the exceptional gains enjoyed by the homeowners who enjoy it from 2020-2022, it may indicate a long-term long-term path where housing is closely assessed with wider economic basics instead of the speculative surplus,” GodC added.

Meanwhile, Ey-Parthenon analysts seemed more depressed around the housing market in a report also issued on Tuesday, expecting that home prices will turn negativity on an annual basis by the end of the year due to low demand and high stocks.

House lists increased by 25 % from last year, and stocks rose for 21 months in a row. Home builders are also careful given that the demand is under pressure and that construction costs are still high.

“We look forward to the front, the housing market is expected to remain stagnant, while slowing the income growth and the high high borrowing costs constantly Ey The report said. “Although the proposed changes to the organizational environment can help improve construction morale, the high construction costs due to high tariffs along with wide stocks will continue to restrict construction activity.”

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