Thrifty Banker
  • Politics
  • Business
  • World
  • Investing
  • Politics
  • Business
  • World
  • Investing

Thrifty Banker

Business

Home prices may be on the verge of cooling off

by September 2, 2023
September 2, 2023
Home prices may be on the verge of cooling off

After rising steadily since January, home prices may now be turning lower again.

The latest read on home prices shows they hit another all-time high in July, rising 2.3% from the same month last year, according to Black Knight.

That’s a bigger annual gain than the roughly 1% recorded in June, and August’s annual comparison will likely be even larger because prices began falling hard last August.

A for sale sign in front of a home in Arlington, Va., on Aug. 22, 2023. Andrew Cabellero-Reynolds / AFP – Getty Images

But prices weakened month to month, according to Black Knight. While still gaining, which they usually do at this time of year, the gains fell below their 25-year average. This after significantly outdoing their historical averages from February through June. It’s a signal that a slowdown in prices may be underway again.

“In addition to monthly gains slowing below long-term averages, Black Knight rate lock and sales transaction data also points to lower average purchase prices and seasonally adjusted price per square foot among recent sales,” said Andy Walden, vice president of enterprise research at Black Knight. “All of these factors combined underscore the need to focus on seasonally adjusted month-over-month movements rather than simply relying on the traditional annual home price growth rate.”

Behind the cooling off: mortgage rates. They rose sharply last summer and fall, causing prices to drop. They then came down for much of the winter and a bit of the spring, causing home prices to turn higher again. Now rates are back over 7% again, hitting 20-year-plus highs in August.

Add to that, new listings rose from July to August, atypical for that period of the year. Some sellers may be trying to cash in on these historically high prices. Active inventory, however, is about 48% below the levels seen from 2017 to 2019.

“While the uptick in new listings is good news for home shoppers, inventory remains persistently low, even with record-high mortgage rates putting a damper on demand,” said Danielle Hale, chief economist for Realtor.com.

More from CNBC

Dell has best day on stock market since its relisting in 2018 after earnings sail past estimates Here’s where the jobs are for August 2023 — in one chart Welcome to spooky season: Horror movies will dominate movie theaters from now until Halloween

A drop in prices would come as some relief to buyers, but unlikely enough.

The jump in home prices since the start of the Covid pandemic, combined with much higher mortgage rates has crushed affordability.

It now takes roughly 38% of the median household income to make the monthly payment on the median-priced home purchase, according to Black Knight. That makes homeownership the least affordable it’s been since 1984.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Atico Mining
next post
Another delivery driver dies as a battle rages over heat safety in Texas

Related Posts

More signs of slowing inflation may arrive in...

December 13, 2023

Payrolls soared by 336,000 in September, defying expectations...

October 10, 2023

Star witness says FTX head Sam Bankman-Fried told...

October 11, 2023

U.S. consumer sentiment falls slightly as outlook for...

April 16, 2024

Lululemon founder slams company’s ‘whole diversity and inclusion...

January 6, 2024

Tesla ordered by auto regulators to provide data...

August 30, 2023

New Hampshire city gears up to quadruple its...

December 18, 2023

JPMorgan Chase posts record profit as the bank’s...

January 17, 2025

Spam donates 264,000 cans of meat product valued...

August 18, 2023

Dow slips for first losing day in nine...

May 15, 2024

    Sign up for our newsletter to receive the latest insights, updates, and exclusive content straight to your inbox! Whether it's industry news, expert advice, or inspiring stories, we bring you valuable information that you won't find anywhere else. Stay connected with us!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular

    • 1

      Top 10 Countries for Natural Gas Production (Updated 2024)

      April 6, 2024
    • 2

      Understanding Lithium Mineralogy from an Investment Perspective

      September 12, 2023
    • 3

      US Capital Global Facilitates $50MM Financing to Accelerate Charbone Hydrogen’s North American Expansion

      June 6, 2025
    • 4

      Israel confirms it is arming Hamas rivals in operation opposition calls ‘complete madness’

      June 6, 2025
    • 5

      A GOP operative accused a monastery of voter fraud. Nuns fought back.

      January 3, 2025
    • 6

      Crypto Market Recap: Strategy Eyes US$1B Raise for Bitcoin Push, UK Regulator Reverses ETN Ban

      June 6, 2025
    • 7

      China’s aircraft carriers send message in the open Pacific for the first time – and bigger and more powerful ships are coming

      June 16, 2025

    Categories

    • Business (1,053)
    • Investing (2,079)
    • Politics (2,977)
    • Uncategorized (20)
    • World (3,387)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: thriftybanker.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thriftybanker.com | All Rights Reserved