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House price rise slows for the first time since May 2020

Daniel Acker | Bloomberg | Getty Images

Home prices are still much higher than they were a year ago when the pandemic caused a major runaway of homes, but the rise is finally beginning to ease.

According to the S & P CoreLogic Case-Shiller National Home Price Index, home prices rose 19.5% year-on-year in September, up from 19.8% annually in August. This is the first decline in annual profit since May 2020.

Complex facilities in 10 cities increased by 17.8% from a year ago, down from 18.6% in August. Complex facilities in 20 cities increased by 19.1% year-on-year from 19.6% in the previous month.

The cities with the largest price increases were Phoenix, Tampa and Miami. Phoenix prices rose 33.1% year-on-year, Tampa rose 27.7%, and Miami rose 25.2%. Six of the 20 cities reported higher price increases in the year ending September 2021 compared to the year ending August 2021.

Annual price increases in Chicago, Minneapolis and Washington, DC were minimal, but all increased by more than 10%.

Craig Lazara, Managing Director of the S & P Dow Jones Index, said, “If you need to select just one word to describe the September 2021 home price data, that word is’slow down’.” Will be. ” The pace of price increases has slowed slightly. “

Prices continue to rise due to very tight inventories and intense investor activity in the housing market. While profits are declining, it is unlikely that prices will drop dramatically, as in the case of a home crash. Supply and demand fundamentals still support expensive markets.

“The market has been chilling since the beginning of the year, and dozens of competing bids, contingency exemptions, and price increases have made home shopping a struggle, especially for first-time buyers. More and more homeowners are preparing. George Ratiu, Economic Research Manager at Realtor.com, said:

Rising mortgage rates are also affecting prices. According to Mortgage News Daily, the 30-year average interest rate fell to a recent low of 2.78% in early August and then began to rise steadily. September ended at 3.15%.

House price rise slows for the first time since May 2020

Source link House price rise slows for the first time since May 2020

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