(CN) — Home prices across the United States were 6.3 percent higher in June from a year earlier, according to a new analysis by S&P Global.
The S&P CoreLogic Case-Shiller 20-city home price index released Tuesday found that the biggest year-over-year gains were in the west – specifically in Las Vegas, Seattle and San Francisco.
In June, Las Vegas led the way with a 13 percent year-over-year price increase, followed by Seattle with a 12.8 percent increase and San Francisco with a 10.7 percent increase.
Despite these gains, prices rose more slowly in June than in May, when S&P found prices had risen 6.5 percent from a year earlier.
The report also found that home values are increasing at more than double the pace of average wage growth, weighing down property sales despite the robust job growth.
In an analysis accompanying the report, David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, said while home prices continue to rise across the United States, “we are seeing signs that growth is easing in the housing market.”
“Sales of both new and existing homes are roughly flat over the last six months amidst news stories of an increase in the number of homes for sale in some markets,” Blitzer said. “Rising mortgage rates – 30 year fixed rate mortgages rose from 4 percent to 4.5 percent since January – and the rise in home prices are affecting housing affordability.”
While the west ruled in terms of price increases, the northeast and mid-west have been experiencing far slower price increases, S&P said.
According to the report, Washington, D.C., Chicago and New York City showed the three slowest annual price gains among the 20 cities included in the index.