Slow home price growth continues in housing market
Posted on Tuesday, September 9, 2014 at 10:13:17 AM
Even with low residential financing rates, high asking prices can hamper affordability and make it much harder for many people to get into their dream homes. That is why it is such good news that price growth has been slowing down - gains are now coming at a more steady pace than in recent months.
According to Trulia, prices only ticked up 1 percent from July to August. The yearly increase was 7.8 percent, down from the rate reported at the same time last year. The slowest price gains have been found in the Northeast, thanks to a weaker housing bubble leading to more stable conditions after the burst.
On the other hand, fast price growth is appearing in states with a high number of foreclosures, because once those homes sold at a depressed value, the inventory got a sharp boost in prices.
In addition, a National Association of Realtors survey has found that the housing market outlook is mixed among Realtors. These experts believe that several states will see an increase in inventory, but overall supply will remain restricted. Also, Realtors pointed to these past price gains as a reason why more listings are hitting the market, but at the cost of affordability.