U.S. home prices have consistently risen each month in comparison to the prices in 2020. As many Americans are aware, the onset of the pandemic created a high demand for homes and with the short supply and low rates, prices increased significantly.
However, a recent report indicates the price increases may be slowing down. CNBC.com reports in an article written by Diana Olick, “Home prices rose 19.5% in September year over year, down from a 19.8% annual gain in August, according to the S&P CoreLogic Case-Shiller National Home Price Index. That is the first decrease in the annual gain since May 2020.”
Some cities continue to see significant increases in pricing compared to September 2020. For example, Phoenix home prices grew just over 33% compared to September 2020. Even some of the cities in America that reported the smallest gains still have increases of more than 10%.
The managing director at S&P Dow Jones Indices, Craig Lazzara, may have coined the most accurate description of this data: “Deceleration”. Prices are still strong, it just appears the growth is slowing down a bit. The combination of an anticipated increase of homes coming on the market with mortgage rates slightly increasing are potential factors.
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