July saw U.S. home prices show virtually flat appreciation compared to June, with a 4.3% year-over-year rise, the slowest growth since 2010's unusual trend. CoreLogic forecasts continued slippage in price growth, estimating that appreciation will decline to 2.2% by July 2025, signaling softer demand amidst high mortgage rates.
Despite a notable lack of significant price movement during the busy summer season, Rhode Island, New Jersey, and Connecticut stood out with year-over-year price increase of 10.6%, 9.7%, and 8.3%, respectively. This growth contrasts sharply with the broader trend of stagnant national home prices.
CoreLogic's Chief Economist, Selma Hepp, highlighted ongoing pressures from high mortgage rates, which have dampened housing demand significantly, leading to a slowing of price gains in the summer. She noted that predictions of Fed rate cuts and lower mortgage rates might not sufficiently drive buyer interest when concerns about the labor market and a potential economic soft landing remain.
The report indicated that national home prices have reached their 150th consecutive month of annual growth, although this growth has fallen below 5% for three months. This marks a significant shift as historical data typically showcases stronger price activity during peak purchasing seasons.
Collection
[
|
...
]