Home price hikes are slowing more than expected

Rising supply and Slow demand The housing markets are finally causing Prices To cool, and weakness is accelerating.

According to the home prices at the national level in April, according to the previous year, according to, according to S&P Corelogic Case-Shiller Index Released on Tuesday. It is below 3.4% annual growth in March and the smallest benefit in about two years.

The report is slightly backed, as it is an average an average of three months of prices ended in April. Other current readings of the market, such as one Palcl LabsShows that prices at the national level are now flat compared to a year ago.

The S&P case-lady found that the prices of prices were holding their index measures of 10- and 20-city composite. Both are now far below their recent peaks. In addition, the annual growth in reading in April was in the last six months, which means that prices were promoted from the spring market instead of showing the whole year.

“Is it especially striking how this cycle has reshuffled the regional leadership- the marks that were epidemic darling are now lagging, while historically stable artists are determining the speed in midwests and northeast.

New York saw the biggest increase in prices, with 7.9% annual profit, followed by Chicago 6% and Detroit 5.5%. This is a change for the first years of the epidemic, when the sun belt had huge demand and large price advant.

Prices are now falling in those first hot markets. Both Tampa, Florida and Dallas became negative, below 2.2% and 0.2% respectively. The prices of San Francisco were originally flat, and both Phoenix and Miami took advantage of more than 1%.

High mortgage rates, which shoot more than 7% in April and have come back under the mark, which are possessed by potential monthly payments near the generation high and the significant pools of buyers, especially the first-timer. This part fell to just 30% of May sales, According to the National Association of Realters. For the first time buyers historically form 40% market.

The supply of houses for sale is increasing rapidly, but is Still below the pre-pandemic level. According to a new report by Redfin, only 6% of vendors are in danger of selling in damage. This is slightly higher than a year ago, but still historically low.

While prices are definitely weakening, they are not close to the risk of the subprime mortgage crisis and the major fall after the great recession.

Godek said, “The supply of housing remains severely forced, the owners of the current house are reluctant to surrender the rates of their sub-4% epidemic-era and fail to meet the demand for new construction. This supply-asking imbalance continues to provide a price floor, which stops sharp reforms, which feared a few people.”