Home-price growth across the country is beginning to show signs of flattening, with the S&P Case-Shiller U.S. National Home Price NSA Index reporting an annual gain of 19.8% in August. That’s essentially the same gain as the month prior, marking the first time that the year-over-year increase in home prices didn’t see meaningful growth from one month to the next since early 2020.
Selma Hepp, deputy chief economist at CoreLogic, called the flat price growth of August a "turning point".
“While demand remains strong and buyers are still generally paying more for homes than asking price, the slowing acceleration in home prices suggests that buyer fatigue is setting in, particularly among higher-priced homes where the acceleration in price growth from the previous month has been larger compared to low-tier homes,” she said.
Some of the stall also can be attributed to expected seasonality at the close of the summer homebuying season, Hepp explained. Additionally, Connecticut home sales are down 16% from the markets peak in October 2020, according to RedFin.
Craig Lazzara, managing director and global head of index investment strategy at S&P, also shares this insight, "The strength in the U.S. housing market is being driven in part by a reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes."
If you've been waiting to buy a home, now is the time to act. Let the lending experts at National Iron Bank help you find your way home. Click here to learn more!