In July 2022, US housing prices showed a small retreat from the prior month, dipping by 0.3 percent compared with June. This shift is supported by data from a real estate analytics firm that tracks home values across the country. The drop marked a rare pause in a long-running ascent in prices that had persisted through most of the recent years. Among metropolitan areas, San Francisco experienced the most pronounced decline, with prices down by about 3.67 percent from the previous month. The national pattern pointed to softer month-over-month gains, while the annual pace of price growth still persisted, though at a slower rate than in recent months. Specifically, July 2022 saw prices rise by roughly 15.8 percent compared with July 2021, signaling that annual gains remained substantial even as the monthly growth cooled. This combination of a cooling monthly trajectory and still-healthy year-over-year gains is typical of markets transitioning from peak pricing to a more balanced rate of appreciation, influenced by factors such as mortgage rates, housing supply, and demand dynamics across different regions.
Analysts also offered projections about the broader trajectory of real estate prices. Looking ahead to the next year, some expected the annual pace of home price appreciation to ease further, with forecasts indicating a continued, albeit slower, growth path around the mid to high single digits. These projections reflect ongoing adjustments in borrowing costs, consumer confidence, and the supply of homes available for sale, all of which can influence price momentum across major markets in the United States.
On the rental side, data from mid-July showed a notable uptick in apartment rents in Manhattan, New York. The average monthly rent reached a record level near five thousand dollars, with an annual increase around twenty-nine percent noted for June 2022. Analysts expect price pressures in central areas to persist through the autumn months as demand remains robust in prime locations. The higher rents in Manhattan are often attributed to a combination of constrained rental supply, elevated living costs, and the appeal of living in the city center, even as overall housing affordability remains a concern for many households.