Home prices expected to decrease, despite yearly gains
Posted on Tuesday, October 1, 2013 at 11:03:35 AM
Across the country, home prices are moving up on a yearly basis. Homebuyers using residential financing often take many factors into account when making their decisions, and the current figures point to a different trend for the rest of 2013.
Despite the year-over-year increase in home prices, the monthly change has been far less drastic, according to the recent Home Price Index from CoreLogic. Compared to July 2013, prices jumped up only 0.9 percent for August. Year-over-year prices increased 12.4 percent.
"Home price gains were negligible month over month in August - an expected decrease in the pace of appreciation as housing enters the off-season," said Mark Fleming, chief economist for CoreLogic. "While prices increased more than 12 percent on a year-over-year basis, the month-to-month change is more telling of this year's late summer trend."
Overall, price appreciation has been slowing down, the news source noted. Anand Nallathambi, CEO and president of CoreLogic, explained that residential financing rates may have been the cause.
Historically, rates are still fairly low, according to MarketWatch. The housing market is expected to continue performing well. Homebuyers can find positives in other areas beside prices and financing, such as career choices and total income. Given the state of the housing market, both buyers and sellers can find something to look forward to.