The leader was New York, where prices rose 9% year-on-year this month, followed by San Diego and Las Vegas with price increases of 8.7% and 8.5% respectively.

Increased mortgage rates complemented price spikes this month, with the 30-year fixed rate hitting nearly 7% in June. While home prices typically fall when borrowing costs rise, the lack of supply has left homebuyers financially locked out.

Home sales have been slow this summer as prices have reached uncomfortable levels. Previous data from the National Association of Realtors showed existing home sales slumped 5.4% between May and June. This has since improved, as a recent NAR report shows sales rose 1.3% in July.

Home developers have also been pulling back recently, causing the U.S. construction industry to hit a four-year low in July. With consumers unable to afford new homes, developer confidence hit a new low in August.

How long will this take?

In June, Bank of America predicted that price momentum would continue at least until 2026, with the market growing by 4.5 percent and 5 percent this year and next, respectively.

A recent report from Fitch Ratings estimates that prices could rise as much as 5% this year. Price growth could accelerate once the Federal Reserve begins cutting interest rates, the firm previously noted. The Case-Shiller index has gained 4.6% so far since January.