Home price growth has slowed for the fourth month in a row as the housing market continues to cool amid high mortgage rates, according to one measure.
Compared to July, house prices are down 0.7%. Three-quarters of states recorded a decline in August.
On a year-on-year basis, house price gains slowed to 13.5% compared to April’s peak of 20.9%. CoreLogic house price index.
The company expects price growth to slow to 3.2% by August 2023.
“Rising home ownership costs have dampened buyer demand, causing prices to fall at a faster pace than originally anticipated,” said Thelma Hepp, interim head of CoreLogic’s office of chief economists, in a statement.
To clarify, house prices rose for the 127th straight month in August. However, the pace of inflation is slowing.
Soaring interest rates and rising home prices continue to hit prospects. The average 30-year mortgage rate was 6.69% on Tuesday morning, according to the . Mortgage News Daily.
Crestview-Fort Walton Beach-Destin, FL; Bremerton, WA-Silverdale, WA; Bellingham, WA; Boise City, Idaho; and Reno, NV, according to CoreLogic. included.
““Rising home ownership costs have dampened buyer demand, causing prices to fall at a faster pace than originally anticipated.”“
According to CoreLogic, the West Coast and Mountain West saw the biggest month-over-month declines in home prices.
“The West Coast and Mountain West housing and second home markets recorded particularly strong price gains in the summer of 2021, but were the first markets to see month-over-month price declines at the same time this year.” Hep said.
But even though price growth has slowed, “a lot of hopefuls could disappear as mortgage rates approach 7%,” she added.
Miami home prices remain strong, with home prices up 27.1% year-over-year in August, followed by Tampa.
But Hurricane Ian is expected to dampen price gains not just in Tampa, but in other parts of Florida dealing with the aftermath and storm damage, CoreLogic said.
and another reportCoreLogic estimated that Hurricane Ian was “Florida’s deadliest storm since Hurricane Andrew made landfall in 1992,” adding that the disaster would “forever change the real estate industry and urban infrastructure.” rice field.
By state, Florida and Tennessee saw the highest increases in home prices at 26.4% and 20%, respectively, according to CoreLogic.
Washington DC ranked last with 2.4% home price growth.
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