Home-price growth has slowed for the fourth month in a row, as the housing market continues to cool amid high mortgage rates, according to one measure. Compared to July, home prices have fallen by 0.7%. Three-quarters of states posted declines in August.
On a year-over-year basis, home-price appreciation slowed to 13.5%, compared to a peak of 20.9% in April, according to CoreLogic’s Home Price Index. The company is forecasting price growth to slow to 3.2% by August 2023. “The increased cost of homeownership has dampened buyer demand and caused prices to decelerate at a faster pace than initially expected,” Selma Hepp, interim lead of the Office of the Chief Economist at CoreLogic, said in a statement. To be clear, home prices have risen for the 127th month in a row in August. But the pace of how fast prices are increasing is slowing. High rates and elevated home prices continue to hurt prospective buyers. The average rate on the 30-year mortgage was 6.69% on Tuesday morning, according to Mortgage News Daily. The top five markets at risk of home-price declines include Crestview-Fort Walton Beach-Destin, Fla., Bremerton-Silverdale, Wash., Bellingham, Wash., Boise City, Id., and Reno, Nev., CoreLogic said.
“‘The increased cost of homeownership has dampened buyer demand and caused prices to decelerate at a faster pace than initially expected.’”
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