US Housing Market Hits Rough Patch as Home Prices Struggle To Match Inflation

Benzinga

Oil prices climbed on Tuesday as fears of escalating conflict between Russia and Ukraine threatened supply, while speculation grew that OPEC+ will not raise output at its September 7 meeting. Brent crude rose 1.7% to $69.28 a barrel after earlier topping 2%. U.S. West Texas Intermediate gained nearly 2.8% to $65.79, according to Reuters. Analysts expect OPEC+ to maintain voluntary cuts from members, including Saudi Arabia and Russia, supporting prices in the $60 range. Ukrainian drone strikes have disrupted facilities processing 1.1 million barrels per day, or 17% of Russia’s capacity. Investors also await U.S. labor and crude inventory data, which could influence Federal Reserve policy and market direction.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03The U.S. housing market is stagnating as home prices lag behind inflation,

00:07making homeownership less affordable for many Americans.

00:10A Fortune report revealed that the housing market's ability to build wealth is weakening,

00:15though home prices are near record highs. S&P's Nicholas Godek noted,

00:20this is the first time in years that home prices have failed to keep pace

00:23with broader inflation, which has been driven higher by Trump's tariffs.

00:28The S&P cotality case, Schiller Index, showed a 0.3% month-over-month drop in June,

00:34the fourth straight monthly decline.

00:36Year-over-year, the 20-city composite rose 2.1%, down from 2.8% in May,

00:43while consumer prices rose 2.7%.

00:46Nicholas Godek said the slowdown is historically important

00:49because home values once grew at double-digit rates, creating wealth,

00:53but now appear to be leveling off at inflation-matching growth.

00:57For all things money, visit Benzinga.com.

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