US home price growth continues to slow

US home prices in August experienced their lowest year-over-year appreciation since April 2021, according to the latest CoreLogic Home Price Index report.

Due to higher mortgage rates cooling buyer demand, annual home price growth slowed for the fourth straight month to a 13.5% pace, down seven basis points from July. According to CoreLogic, the monthly dip indicates reduced homebuyer enthusiasm, with nearly three-quarters of states posting declines from July.

“The increased cost of homeownership has dampened buyer demand and caused prices to decelerate at a faster pace than initially expected,” said CoreLogic chief economist Selma Hepp. “Housing markets on the West Coast and in the Mountain West, as well as second-home markets, recorded particularly strong price growth in the summer of 2021 but were the first to see month-over-month price declines during the same period this year.”