CoreLogic: Home price growth continues downward trend
Balances the real estate market
Home prices, including distressed sales, climbed 6.4% in August 2014 compared to a year prior, following 30 months of consecutive year-over-year increases in home prices nationally, the latest CoreLogic home price index reported.
On a monthly basis, home prices, including distressed sales, marginally grew 0.3% in August compared to July.
This is slightly down from July’s 7.4% year-over-year increase and 1.2% month-over-month increase.
"The pace of year-over-year appreciation continues to slow down as real estate markets find more balance. Home price appreciation reached a peak of almost 12 percent year-over-year in October 2013 and has since subsided to the current pace of 6 percent," said Mark Fleming, chief economist at CoreLogic.
"Continued moderation of home price appreciation is a welcomed sign of more balanced real estate markets and less pressure on affordability for potential home buyers in the near future," he added.
As Paul Diggle, property economist at Capital Economics, put it, “The slowdown in house price growth reflects the steady rise in supply. Homeowners have become more willing to list their homes and homebuilders have brought an increasing number of new homes to the market.”
Diggle says that this supply response will continue to weigh on house price growth, which he expects to slow from 6.2% year-over-year in the latest Case-Shiller reading to 4% year-over-year by the end of the year.