On August 7, 2024, a hint has been posted in front of a house for sale in San Rafael, California.
Justin Sullivan | Getty images
Home prices, high mortgage rates, rising supply and declining demand are all joining all forces to cool the housing market of the country.
According to a mortgage technology firm, ICE, the annual domestic price growth in June was 1.6% increase in May and the slowest rate in two years.
Nearly one third of the largest 100 markets are now showing a decline in the annual price of at least one full percentage point from the recent high level, and the trend shows that more markets will do the same. The price of a single family house was 1.6%, while the prices of condominium were 1.4% lower at the national level.
The inventory has been increasing continuously in the last one year, compared to this month 29% in June. However, the benefits slowed down this previous spring. The average rate on the 30-year fixed hostage is hovering in the high 6% range for most of this year, it was doubled during the early days of the epidemic, when house prices were initially closed.
“Housing market has two competitive forces,” said Andy Walden, head of hostage and housing market research at ICE. “Increasing inventory levels are helping to make homes more economical, but prices fall into markets and houses in rising numbers, taking more time to sell, which can make home owners reluctant in the list.”
Regionally, prices are still seeing large benefits in the Northeast and Midwest. They are softening to the south and west. Cape Coral, Florida saw the biggest decline, with prices more than 9%. Austin and Tampa are also seeing a decline in value, as seven of the 10 major markets in California.
