Home prices continue to slow across America.
Home prices dropped by 0.5% in September from August, according to CoreLogic’s Home Price Index and Home Price Index Forecast.
Home price appreciation has slowed considerably. September is the fifth month in a row that year-over-year growth has decelerated. Home prices were still up 11.4% from last September.
With mortgage rates above 7% and the number of homes for sale still lower than before the pandemic, buyers are still having a hard time navigating the market and finding something within their budget.
“Home prices are slowing from this spring’s high but remain elevated from a year ago,” Selma Hepp, interim lead of the office of the chief economist at CoreLogic, said in a statement.
“By contrast, markets that continue to see an in-migration of higher-income households are still experiencing home price gains that are notably higher than the national rate of appreciation,” she added.
Two-thirds of U.S. cities saw a small month-over-month price decline in September, according to CoreLogic.
“On the West Coast and in Mountain West states, home prices are slowing from this spring’s high but remain elevated from a year ago,” Hepp said.
But some parts of the U.S. continue to defy the slowdown in the real-estate sector.
Home prices were still expensive in states in the Southeast, CoreLogic said, with Florida leading the country for the eighth month in a row. South Carolina came in second, followed by Tennessee.
D.C. ranked last for home price appreciation, at 1.8% this year compared to last year.
The city of Miami saw the highest year-over-year price gains among the country’s 20 largest metro areas, at 25.6% from last September.
Tampa was second on the list with the highest year-over-year home price gains in September at 23.2%.
The company is expecting home price growth to slow to 3.9% by September 2023.
Got thoughts on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at firstname.lastname@example.org