Home price growth continues to slacken, with annual growth decelerating to the slowest pace since August 2012.
According to recent data from CoreLogic, home prices in January grew 4.4% year over year, increasing just 0.1% from the previous month.
Since peaking at 6.6% growth in April 2018, home prices have continued to slow, which CoreLogic attributes to rising interest rates.
(Source: CoreLogic; click to enlarge)
“The spike in mortgage interest rates last fall chilled buyer activity and led to a slowdown in home sales and price growth,” said CoreLogic Chief Economist Frank Nothaft.
But Nothaft said he expects things to pick up with the spring thaw now that rates have come down.
“Fixed-rate mortgage rates have dropped 0.6 percentage points since November 2018 and today are lower than they were a year ago,” Nothaft said. “With interest rates at this level, we expect a solid home-buying season this spring.”
CoreLogic predicts the slowdown in home prices will continue, estimating that home prices will increase by 3.4% in 2019, compared with 2018’s average of 5.8%.
It also projects appreciation to decrease from January to February by 0.9%.
But CoreLogic President and CEO Frank Martell said that he expects things to pick up later in 2019.
“The slowing growth in home prices was inevitable in many respects as buyers pull back in the face of higher borrowing and ownership costs,” said Martell. “As we head into 2019, we can expect continued strong employment growth and rising incomes, which could support a reacceleration in home-price appreciation later this year.”
Read the full article at housingwire.com.
Property Search
RSS Feed
Search Blog
Recent Blogs
Selling Your Home As Is To A Local Cash Investor - You may be going through a
Full Service Listing With Me - Use the experience of a licensed
Selling A Vacant Home For Only 1 Percent - Great for investors who just
DoItYourself DIY Sellers - Only pay for what you NEED to sell
Our Bloggers
Alex Altaly - 8
Semion Androne - 7
Jerome Ball - 18
Surya Basava - 2
Swella Bingham - 18
Gary Brown - 2
Edward Budnek - 3
Erin Claxton - 1
Jason Crouch - 1
Hossam Elsayed - 10
Torre Escott - 2
Tyler Finkler - 4
Jennifer Gonzalez - 7
Kristen Heap - 2
Ayesha Isaac - 1
Ron Johnson - 8
Chris Johnson - 8
Denis Joseph - 2
Lori Kempton - 2
Rose Nassar - 4
Dennis and Laurie OBrien - 7
Candace Rebecchini - 23
Chris Russell - 95
Alison Segrest - 5
Jim Sfarnas - 27
Christina Strickland - 11
Meredith Thomas - 1
Javaria Usmani - 1
Karin Waterschoot-Perez - 77
This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.
Click 'Save' to add a property to this list.New & returning visitors please enter your information to login.
This message will go directly to the head of our team.
Español
Francais
Deutsch
Italiano
Portugues 
Chinese 
Russian