Real US house prices up 3.7% in June from May, up 53.3% year-over-year; consumer house-buying power down 2.8% from May, down 22.7% annually, decline in affordability led by higher nominal house prices, 30-year fixed mortgage rate: First American

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SANTA ANA, California , August 29, 2022 (press release) –

There remains a structural and long-term national supply shortage in the housing market, but in some cities the pullback in demand is strong and inventory is rising faster, says Chief Economist Mark Fleming

First American Financial Corporation (NYSE: FAF), a premier provider of title, settlement and risk solutions for real estate transactions and the leader in the digital transformation of its industry, today released the June 2022 First American Real House Price Index (RHPI). The RHPI measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time at national, state and metropolitan area levels. Because the RHPI adjusts for house-buying power, it also serves as a measure of housing affordability. 

Chief Economist Analysis: Real House Prices Increase 53.3 Percent Year Over Year
“In June 2022, the Real House Price Index (RHPI) jumped up by 53.3 percent on an annual basis, setting a new record for the fifth month in a row for the fastest year-over-year growth in the more than 30-year history of the series. This rapid annual decline in affordability was driven by an 18.5 percent annual increase in nominal house prices and a 2.5 percentage point increase in the 30-year, fixed mortgage rate compared with one year ago,” said Mark Fleming, chief economist at First American. “Even though household income increased an impressive 4.7 percent since June 2021, it was not enough to offset the affordability loss from higher mortgage rates and fast-rising nominal prices.

“As affordability wanes, would-be buyers are pulling back from the market, reducing competition for homes and prompting annual house price appreciation to moderate. Nationally, annual house price growth peaked in March at nearly 21 percent, but has since decelerated slightly to a still-robust 18.5 percent in June,” said Fleming. “However, the modest price deceleration is not a national phenomenon. While house price growth has slowed in all top 50 markets we track, the pace of moderation varies significantly by market.” 

The Great House Price Moderation
“While all top 50 markets are pulling back from their respective peaks in price appreciation, some markets have decelerated faster than others. This chart shows annual house price appreciation at the 2021-2022 peak for each respective market, and the pace of growth in June 2022,” said Fleming. “The markets are rank-ordered from the largest to the smallest percentage point difference between the recent peak for that market and the corresponding June 2022 house price appreciation rate.

“For example, the market with the strongest deceleration was Sacramento, Calif. In Sacramento, annual house price appreciation peaked in July 2021 at 23.5 percent, but has since slowed to 10.8 percent. The market with the smallest gap, on the other hand, was New York. House price appreciation in New York did not accelerate as fast as in other markets and was well below the national peak, only reaching 13 percent on an annual basis at its peak in May 2021 and it remains at nearly that same pace in June,” said Fleming. “The market with the slowest annual pace of price appreciation in June was San Francisco at 6.2 percent, down significantly from its July 2021 pace of 17.5 percent. Conversely, the market with the fastest pace of appreciation in June was Miami at 33.8 percent, which is nearly the same pace as its peak of 34.4 percent in May 2022.

“The record-breaking house price appreciation nationwide and across markets in 2021 and early 2022 was due to a supply and demand imbalance – too much demand, too little supply,” said Fleming. “There remains a structural and long-term national supply shortage in the housing market, but in some cities the pullback in demand is strong and inventory is rising faster, resulting in a greater moderation of house price growth.” 

June 2022 Real House Price Index Highlights 

  • Real house prices increased 3.7 percent between May 2022 and June 2022.
  • Real house prices increased 53.3 percent between June 2021 and June 2022.
  • Consumer house-buying power, how much one can buy based on changes in income and interest rates, decreased 2.8 percent between May 2022 and June 2022, and decreased 22.7 percent year over year.
  • Median household income has increased 4.7 percent since June 2021 and 72.5 percent since January 2000.
  • Real house prices are 32.9 percent more expensive than in January 2000.

While unadjusted house prices are now 54.8 percent above the housing boom peak in 2006, real, house-buying power-adjusted house prices remain 6.4 percent below their 2006 housing boom peak. 

June 2022 Real House Price State Highlights

  • The five states with the greatest year-over-year increase in the RHPI are: Florida (+75.6), South Carolina (+63.7 percent), Georgia (+61.6), North Carolina (+61.5 percent), and Arizona (+60.2 percent).
  • There were no states with a year-over-year decrease in the RHPI. 

June 2022 Real House Price Local Market Highlights

  • Among the Core Based Statistical Areas (CBSAs) tracked by First American, the five markets with the greatest year-over-year increase in the RHPI are: Tampa, Fla. (+70.6 percent), Charlotte, N.C. (+69.8), Raleigh, N.C. (+69.6 percent), Miami (+68.4 percent) and Orlando (+66.4 percent).
  • Among the Core Based Statistical Areas (CBSAs) tracked by First American, there were no markets with a year-over-year decrease in the RHPI. 

Next Release
The next release of the First American Real House Price Index will take place the week of September 26, 2022 for July 2022 data. 


  • First American Data & Analytics
  • Freddie Mac
  • Census Bureau 

The methodology statement for the First American Real House Price Index is available at ;

Opinions, estimates, forecasts and other views contained in this page are those of First American’s Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First American’s business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2022 by First American. Information from this page may be used with proper attribution. 

About First American
First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement and risk solutions for real estate transactions. With its combination of financial strength and stability built over more than 130 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $9.2 billion in 2021, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2022, First American was named one of the 100 Best Companies to Work For by Great Place to Work® and Fortune Magazine for the seventh consecutive year. More information about the company can be found at  

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