U.S. home prices grew 15.8 percent in July, a solid number but the third consecutive month that single-family home prices have declined year-over-year, according to data released today.
Home prices fell by 0.3 percent between June and July, a trend that never happened between 2010 and 2019, when prices between those two months averaged an 0.5 percent increase, CoreLogic reported.
The slowing in home price growth is being blamed on 30-year fixed-rate mortgages getting close to six percent during the past few months, which caused some people who had planned to buy a house to change their minds.
CoreLogic is predicting “a more balanced” housing market during the next year, with year-over-year price appreciation slowing to 3.8 percent by next July.
“Following June’s surge in mortgage rates and the resulting dampening effect on housing demand, price growth is taking a decisive turn,” said Selma Hepp, CoreLogic economist, in the statement. “And even though annual price growth remains in double digits, the month-over-month decline suggests further deceleration on the horizon.
In the Inland Empire, home prices rose 17.6 percent between July 2021 and July 2022 but fell 0.26 percent between June and July of this year, according to CoreLogic.
Those numbers do not include distressed properties.