Home market growth slowed in June for the third month in a row, welcome news for buyers.
Rising interest rates as well as increased prices due to lack of inventory slow down price increases after profits have risen significantly faster than incomes and inflation over the past two years.
The S & P CoreLogic Case-Shiller's national home price index, which measures average real estate prices in major metropolitan areas across the country, rose 6.2% in June from 6.4% in May Previous year.
"We were running faster than we should be able to sustain for a long time," said
Managing Director at S & P Dow Jones Indices.
Mr. Blitzer said that next year's price increases are likely to decrease until they are more in line with wages and inflation.
The real estate market has slowed down in recent months, which is due to rising mortgage rates, lack of inventory and a surge in prices is fraught with affordability. Existing home sales have declined for four straight months, said the National Association of Realtors last week. The sale of new homes fell in July for the second consecutive month, the Ministry of Commerce said Thursday.
Nevertheless, despite the slowdown in price increases, profits are still about twice as high as the long-term average. "It may just be that the prices need a bit of time to catch up with the rest of the market slowdown," said Blitzer.
Seattle, which has seen the country's fastest home price increase in nearly two years, fell to second place in June. Prices rose 12.8% in June to June. Real estate agents in Seattle report rising inventories and homes that sit on the market for weeks as shoppers take their time.
Las Vegas, where property prices rose 13% year-on-year in June, now has the country's fastest-growing housing prices. This is a potentially worrying indicator given the housing market's tendency to overheat. But this time around, the boom seems to be on a more solid footing as Las Vegas is now one of the country's fastest growing markets in terms of both jobs and population.
Case Shiller's Index focuses on larger and, above all, more expensive urban areas. Zillow Senior Economist
Zillow data shows that prices have slowed in more expensive markets such as Seattle, Denver and Los Angeles, but are continuing to accelerate or remain stable in less expensive markets.
Price increases appear to be foremost among middle and upper-middle class buyers, with the richest Americans continuing to spend more to buy homes. Toll Brothers posted a 30% increase in profits in the quarter ended July 31, with clients spending an average of $ 165,000 on premium adjustments and design features
An increase in mortgage rates has slowed sales in recent months. The average rate for a 30-year, fixed-rate mortgage fell from 4.53% last week to 4.51% a week earlier, reaching its lowest level since mid-April. This is clear from the data published on Thursday
, Nevertheless, the rate on a 30-year mortgage a year ago was 3.86%, close to historic lows.
Www.cosmetic-business.com//showarti…p?art_id=899 Genworth Mortgage Insurance 's chief economist said that buyers are digesting the rise in rates, but a slowdown in price hikes could help bring people back into Market.
"The reason we think it's more of a slowdown than a direct decline is that you still have a lot of buyers looking to hit the market," he said.
Write to Laura Kusisto at [email protected]