A sign is displayed in front of a house for sale in San Rafael, California, August 7, 2024.
Justin Sullivan | Getty images
The prices of too vague houses, high mortgage rates, the rise in supply and the drop in demand are all associated with cooling the country’s housing market.
The annual growth in house prices in June was only 1.3%, against growth of 1.6% in May and the slowest rate in two years, according to ICE, a mortgage technology company.
Almost a third of the 100 largest markets are now showing annual price reductions from at least a complete percentage point compared to recent summits, and the trend suggests that more markets will do the same. The prices of single -family homes increased by 1.6%, while condominium prices fell 1.4% nationally.
The inventory has increased regularly in the past year, up 29% in June compared to the same month of last year. The earnings, however, began to slow down last spring. The average rate on the 30 -year -old fixed mortgage oscillated in the high range of 6% for most of this year, double what it was at the start of the pandemic, when the prices of the houses initially took off.
“There are two competing forces on the housing market at the moment,” said Andy Walden, head of mortgage market studies and housing at Ice. “The increase in inventory levels contributes to making houses more affordable, but prices decrease in an increasing number of markets and houses take more time to sell, which could make owners reluctant to list.”
At the regional level, prices are still seeing big gains in the northeast and midwest. They soften in the south and west. Cape Coral, Florida, has experienced the greatest drop, with downward prices by just over 9%. Austin, Texas and Tampa, in Florida, also see price reductions, just like seven of the 10 main markets in California.