US home price growth slows to 18%
“Nevertheless, the rebalancing of buyer and seller expectations was inevitable after overheated and unsustainable demand and price growth, followed by a surge in mortgage rates and consequent constraints on affordability. Thus, cooling of price acceleration, as well as demand, will yield a healthier and more balanced housing market going forward.”
Craig Lazzara, managing director at S&P DJI, noted that deceleration and decline are two entirely different things and that prices are still rising at a robust rate.
According to the National Association of Realtors, the median home sales price hit a record high of $413,800 in June before dipping to $403,800 in July. Existing-home sales price in July was also roughly 11% higher than a year ago.
Still, industry experts expect home price growth to slow considerably in the coming quarter. Goldman Sachs chief economist Jan Hatzius forecasted home price appreciation to stall completely, averaging 0% in 2023.
“While outright declines in national home prices are possible and appear quite likely for some regions, large declines seem unlikely,” Hatzius said.
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