Home price growth begins to slow down
Posted on Tuesday, September 2, 2014 at 10:03:02 AM
Homebuyers across the country have had to deal with higher prices putting a damper on affordability, even as residential financing rates and other factors remained near historic lows.
However, a recent report from RealtyTrac showed that home price growth is actually slowing down. In July, the median price of U.S. residential properties hit $191,000. That is a 3 percent month-over-month increase. Even as prices increase, the rate of expansion is becoming more favorable.
"The nationwide home price increase, however, masks slowing home price appreciation in the majority of housing markets across the country," explained Daren Blomquist, vice president at RealtyTrac. "This slowing appreciation was expected and provides another sign that the real estate recovery thus far is behaving rationally."
Furthermore, the recent S&P/Case-Shiller Home Price Indices, released by S&P Dow Jones Indices, supported the assertions made by RealtyTrac. In its report, S&P/Case-Shiller noted that the National Index increased 6.2 percent from June 2013 to June 2014, a slower rate than its previous level.
David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, stated that all cities had lower annual rates on a monthly basis for the first time since February 2008.